Dar Global Buys Two Land Sites in Saudi Arabia for $390 Million
- Business Companies Real Estate Regional
Global Business Magazine- 4 minutes read
Reaffirming the Group’s commitment to Saudi Arabia’s rapidly attractive and growing real estate market, Dubai headquartered Dar Global, the London-listed luxury real estate developer, on Monday announced acquisition of two development land sites in Jeddah and Riyadh for $390 million.
These acquisitions include fully developed plots in Jeddah, and prime plots for development in Riyadh. They follow the successful launches of Trump Tower Jeddah and Neptune by Mouawad in Riyadh, demonstrating Dar Global’s confidence in the Saudi Arabian market.
The acquisition consideration will be settled from either the cash generated from sale of the schemes or issuance of Dar Global Plc shares, or a combination of cash and shares, on or before 60 months from the signing of the definitive agreements.
The Jeddah acquisition involves 243 fully developed plots, acquired for approximately $93 million from a local Saudi landowner, within an 863,000 sq. m. master-planned community.
Located minutes from key Jeddah attractions, these plots offer a modern living environment and will be marketed directly to retail customers. This acquisition is projected to generate significant profit for the Group over the next two years, with an estimated Gross Development Value (GDV) of approximately $200 million, reinforcing Dar Global’s strategy to address the growing demand for real estate in Saudi Arabia for both local and international markets.
The second acquisition in Riyadh involves the acquisition of 190 plots measuring around 466,877 sq. m. for $297 million from Dar Al Arkan Real Estate Company (Dar Al Arkan), the Group’s parent company and majority shareholder.
Located in the north of Riyadh, these plots are also conveniently located near key city landmarks. Dar Global intends to capitalise on its recent activity levels in the area and resell the project through its sales offices and broker network in the Kingdom and the globe. The project will have an estimated GDV of approximately $800 million.
Dar Al Arkan is the majority shareholder in Dar Global, and the Riyadh transaction constitutes a related party transaction under Rule 7.3 of the Disclosure Guidance and Transparency Rules (DTRs). Accordingly, in compliance with Rule 7.3.8R of the DTRs, the Riyadh transaction has been approved by the directors deemed to be independent of Dar Al Arkan, being David Weinreb, Maurice Horan, Richard Stockdale and Ziad El Chaar.
Valuers Appointed
Additionally, given the related-party nature of the Riyadh transaction, Dar Global has appointed valuers to provide an independent valuation, to enable an assessment of the fair market price of the plots. The transactions have been undertaken in ordinary course of business and on an arm’s length basis.
Dar Global CEO Ziad El Chaar said that his company’s proven success in similar transactions, including collaborations with landowners, government entities, and world-renowned luxury and hospitality brands, has established the Company as a leader in developing bespoke, high-end living and investment opportunities to affluent, globally mobile customers.
“These latest acquisitions reinforce Dar Global’s position as an evolving key player in Saudi Arabia’s dynamic real estate market and mark a continued commitment to pursuing high-value opportunities in strategic locations across the Kingdom,” Chaar added.
