| Element List |
Explanation |
| Introduction |
Armah Sports Company announces the signing of a development and operation contract with Qimam Nashaz Real Estate Development Company, a simplified joint-stock company affiliated with Banan Real Estate Company, for the purpose of developing two fully equipped fitness clubs ready for operation (excluding movable furniture and sports equipment) on the land leased by Armah Sports Company, located in Riyadh on the Northern Ring Road in Al-Wadi district. The two clubs will be designated for men and women under the "Optimo" brand owned by Armah Sports Company, which offers clubs designed for individuals seeking luxury, privacy, and high-level services. This project is the first of several projects to be implemented between Armah Sports Company and Banan Real Estate Company and its affiliates, aiming to develop integrated fitness clubs within the strategy to diversify funding sources for the company’s expansion plan. |
| Date of Announcement of the Award |
2025-01-27 Corresponding to 1446-07-27 |
| Contract Subject Matter |
Development and Operation Contract for two fitness clubs. |
| The Entity with Which the Contract was Signed |
Qimam Nashaz Real Estate Development Company is a simplified joint-stock company affiliated with Banan Real Estate Company. |
| Date of Signing the Contract |
2025-01-27 Corresponding to 1446-07-27 |
| Contract Value |
The contract amount is SAR 224,018,481 excluding VAT. |
| Contract Details |
A development contract under which Qimam Nashaz Real Estate Development Company will develop the land leased by Armah Sports Company, located in Riyadh on the Northern Ring Road in Al-Wadi district. The contract includes developing two fully equipped fitness clubs ready for operation (excluding movable furniture and sports equipment), one for men and another for women, in addition to a commercial building that Qimam Nashaz Real Estate Development Company will develop and operate for its benefit. It has been agreed that Armah Sports Company will lease the two sports clubs under a long-term contract starting from their full delivery for a period of 19 years, with a total value of SAR 224,018,481 excluding VAT, with a maximum increase in contract value of up to 24% depending on the performance and revenue of the two fitness clubs. Qimam Nashaz Real Estate Development Company will bear the full rental value of the development land for the entire contract period with the owner. |
| Contract Duration |
19 Years starting from handover |
| Financial Impact and the Relevant Period |
The financial impact of this contract is anticipated to commence upon the completion and operation of the development. |
| Related Parties |
None |
| Additional Information |
Under the development contract, Armah Sports Company will re-lease the development land leased from the owner, Saad Abdulrahman Al-Lehaidan, to Qimam Nashaz Real Estate Development Company to complete the land development procedures. The company will announce upon the completion of the lease contract documentation and any material developments related to the development contract and project in due course. |
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