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Knowledge Economic City has announced the sale of two land plots within its masterplan in Madinah for a total net transaction value of SAR 229.1 million. The company expects the transaction to generate a gross profit of SAR 207.5 million, significantly higher than the recorded book value of the assets. The proceeds will be used to improve liquidity, strengthen the company's financial position and support ongoing strategic development projects. The transaction forms part of the company's broader strategy to optimise its land portfolio while advancing the long-term development of its master-planned project in Madinah.
Knowledge Economic City Company SJSC has announced the sale of two land plots within its masterplan in Madinah, with the total net transaction value amounting to SAR 229.1 million.
According to the company's announcement, the book value of the two land plots in its financial records stood at SAR 21.6 million. Based on the transaction value, Knowledge Economic City expects to record a gross profit of approximately SAR 207.5 million from the sale.
The company said the proceeds from the transaction will be utilised to enhance its liquidity, strengthen its financial position and redeploy capital into its ongoing strategic projects. The move is aimed at supporting the execution of its development plans while improving financial flexibility.
Knowledge Economic City has been progressing with the development of its masterplan in Madinah, which includes residential, commercial, hospitality and mixed-use components. The company has periodically monetised selected land assets as part of its capital allocation strategy to fund infrastructure development and accelerate key projects within the master development.
The latest land sale is expected to provide additional financial resources for the company as it continues to advance its existing developments and optimise the value of its land bank. By unlocking value from non-core land assets, the company intends to direct more capital towards projects that are currently under implementation and support its long-term growth plans.
Source Reuters
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