| Item | Explanation |
|---|---|
| Introduction | Banan Real Estate Company is pleased to announce that its subsidiary, Qimam Nashiz Real Estate Development Company, has signed a development and lease contract with Armah Sports Company to develop and lease two fully fitted and ready-to-operate sports clubs (excluding movable furniture and sports equipment) in Riyadh, Al Rahmaniyah District, on Al Takhassusi Road, with a total value of (244,113,088) SAR excluding VAT.
The two clubs will be dedicated to men and women under the “Optimo” brand owned by Armah Sports Company, which offers clubs designed for people seeking luxury, privacy, and high-level services. This project is one of several projects to be implemented between Armah Sports Company and Banan Real Estate Company, aiming to develop integrated sports clubs. |
| Award Announcement Date | 1446-12-26 (corresponding to 2025-06-22) |
| Contract Subject | Development and leasing of two sports clubs in Riyadh, Al Rahmaniyah District, on Al Takhassusi Road. |
| Contracting Party | Armah Sports Company |
| Contract Signing Date | 1446-12-26 (corresponding to 2025-06-22) |
| Contract Value | The minimum contract value is (244,113,088) SAR excluding VAT, with an additional increase that may reach up to 24% if the clubs’ returns increase. |
| Contract Details | A development and lease contract under which Qimam Nashiz Real Estate Development Company will develop its owned land located in Riyadh (Al Rahmaniyah District, Al Takhassusi Road). The contract includes developing two sports clubs—one for men and one for women—fully fitted and ready for operation (excluding movable furniture and sports equipment).
It was also agreed that Armah Sports Company will lease the two clubs under a long-term lease starting upon full handover, for a period of 20 years, with a total value of (244,113,088) SAR excluding VAT, with an increase of up to a maximum of 24% in the contract value depending on the performance and revenue of the two clubs. |
| Contract Term | 20 years starting from the handover date. |
| Financial Impact and Period of Recognition | During the project execution period, Banan Real Estate Company will realize direct revenue from the development works, in addition to strengthening its investments and increasing its returns through its subsidiary, Qimam Nashiz Real Estate Development Company, upon completion of the project. |
| Related Parties | None. |
| Additional Information | The Company will announce any material developments related to the development contract and the project in due course. |
