Jabal Omar enters sale and lease back agreement with Alinmaa, extends loan maturity
Jabal Omar announced that it had entered a sale and lease-back agreement worth a total of SAR6bn, related to three hotels in Mecca, with Alinmaa Investment Company. The agreement follows the Memorandum of Understanding (MoU) signed between the two parties to establish a real estate investment fund, whereby ownership of the hotels will be transferred to the fund. Necessary approvals were secured from the Capital Markets Authority (CMA). Based on the agreement, the company will lease back the three hotels for 10 years, with an option of buying them back starting the fifth year. Jabal Omar is planning to direct part of the proceeds to repay some of the existing debt obligations. On a separate note, the company announced that the company had extended the maturity of its short-term loan with a local bank to four years, in an attempt to boost the company’s balance sheet liquidity.
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