MoU to sell 93 Phase 2 homes of Saudi's Jabal Omar extended
The memorandum of understanding, facilitated by Al Bilad Bank, will be extended for a period of five months, Jabal Omar Development Company said
A memorandum of understanding (MoU) to sell 93 units of Saudi Arabian master development Jabal Omar's second phase is being extended.
JODC's flagship project, Jabal Omar, is an integrated master-development located close to the Holy Mosque in Makkah.
Developer Jabal Omar Development Company (JODC) stated that the MoU, inked this April, was facilitated by Al Bilad Bank, and a real estate fund was established by Al Bilad for the purpose.
As part of the agreement, JODC had announced it would extend the lease period of 55 residential units sold to Al Bilad Hospitality Fund from one year to five years.
The MoU will be extended for a period of five months, and will close on 22 January, 2018, with the same terms and conditions.
All acquisitions related to the deal are expected to be completed in the current financial year.
In a missive issued to the Saudi bourse, JODC said it expects a positive impact on its revenues and shareholders' equity following the decision.
Last month, JODC revealed plans to establish two specialised outfits providing post-construction services.
The first, a limited liability company, will be an asset management outfit covering hotels, resorts, and hospitality sector facilities.
JODC will own 90% of the company, and the self-financed firm's capital is $4m (SAR15m).
Meanwhile, the second company will operate in the commercial market management field.
Due to be established with $1.3m (SAR5m) capital, JODCwill own 60% of the self-financed company.