Thimar Development Holding Company, one of the companies listed on the Saudi Stock Exchange, announced the completion of a strategic real estate deal involving the sale of land it owns in Al-Kharj Governorate, in an important step that falls within the financial reorganization plan to which the company is subject.
In details of the transaction disclosed in an official statement on the Saudi Stock Exchange (Tadawul), the company sold a plot of land with a total area of 700,000 square meters, located on the Haradh Road, northeast of the military base in Al-Kharj. The total value of the transaction amounted to SAR 5,145,000, including real estate transaction tax. The contract was signed on February 10, 2024, with two buyers: Mr. Mohammed Al-Qahtani, who acquired 600,000 square meters, and Mr. Turki Bin Huleil, who purchased the remaining 100,000 square meters.
General context and background of the deal
This step comes at a crucial time for Thimar, which is undergoing a comprehensive restructuring process under the Saudi Arabian Bankruptcy Law. The approved financial reorganization plan aims to enable the company to overcome its financial challenges, improve its capital structure, and return to a path of sustainable growth. A key pillar of this plan is the sale of underutilized or non-revenue-generating assets, such as this land that has remained unused for years. By liquidating these assets, the company can generate the necessary cash flow to strengthen its financial position and support its future operations.
Importance and expected impact of the deal
Domestically, this transaction is of paramount importance to Thimar and its shareholders, as its financial impact is expected to be positively reflected in the company's financial statements. The proceeds will contribute to strengthening cash flow and improving asset management efficiency by disposing of non-performing assets, thus supporting the company's long-term strategy. This move also sends a message of confidence to investors and creditors regarding management's commitment to implementing the rescue and recovery plan.
At the regional level, and within the Saudi real estate sector, the deal highlights the inherent investment value in cities and governorates surrounding major capitals, such as Al-Kharj Governorate, which enjoys a strategic location near Riyadh and is considered an important agricultural and industrial center. This reflects the general trend in the real estate market, which is expanding beyond major cities, in line with the goals of the Kingdom's Vision 2030, which encourages balanced development across all regions of the Kingdom and attracts investments to develop infrastructure and create new opportunities.
