A pivotal announcement by Thimar Development Holding Company
In a move reflecting its serious efforts to restructure its finances and strengthen its market position, Thimar Development Holding Company announced that its board of directors has approved the sale of an undeveloped plot of land strategically located on Al-Kharj Expressway in Riyadh. This decision comes as part of a comprehensive plan aimed at generating the necessary cash flow to support the company's future operations, settle its financial obligations, and proceed with the implementation of its approved financial restructuring plan.
Financial and regulatory context of the decision
This decision marks a significant turning point for Thimar Company, which has faced financial challenges recently. According to the company's statement published on the Saudi Stock Exchange (Tadawul), the sale, which is pending final approval from the company's general assembly, is not merely a real estate transaction, but a cornerstone of its recovery strategy. Through this move, the company aims to restore its financial stability, ensuring its operational continuity and opening new avenues to enhance its investment capacity by utilizing surplus liquidity in projects with higher economic viability.
The importance of real estate assets and their expected impact
The land plot offered for sale spans 58,793.85 square meters, with a book value of approximately SAR 35.7 million as of the end of last December. Its strategic location on Al-Kharj Road, a vital economic and logistical artery for Riyadh, connects the capital city to industrial and agricultural areas to the south. This transaction is expected to attract significant interest from major real estate developers and investors in the logistics and commercial sectors, given the growing demand for serviced land in the Riyadh area, driven by the city's population and economic growth under the Kingdom's Vision 2030.
The impact of the deal on the local market
Locally, this move is viewed positively, reflecting the company's resilience and ability to make bold decisions to manage its assets efficiently. Introducing a property of this size and location to the market will also increase the supply of land available for development, potentially leading to new projects that create jobs and bolster the region's infrastructure. For investors, Thimar's successful completion of this transaction and the successful execution of its financial plan will reinforce confidence in the company's ability to overcome challenges and return strongly to a path of growth and profitability.
