MBC Group inks land transfer deal with Diriyah in Riyadh

Logo of MBC Group Co.

MBC Group Co. signed a land transfer agreement with Diriyah Co. in relation to the transfer and development of certain plots within the Diriyah project in Diriyah city.

The parties have agreed, pursuant to the agreement, to transfer certain plots within the Diriyah project in Diriyah city to the company or to a wholly owned subsidiary. The plots shall thereafter be developed by Diriyah Co. pursuant to a detailed development works agreement to be entered into between the company (or the relevant subsidiary) and Diriyah Co. in due course (the "definitive development works agreement"), which shall set out the respective rights and obligations of the company (or the relevant subsidiary) and Diriyah Co. with respect to such development works on the plots, MBC Group said, in a statement to Tadawul today, May 8.

For more news on listed companies

Under the definitive development works agreement, Diriyah Co. will carry out the development, design and construction works with respect to the Plots based on a timeline to be agreed between the parties, it added.

According to the statement, the parties have agreed that the purpose of the transfer of the plots is the development thereof in accordance with the definitive development works Agreement to be agreed between the parties at a later stage, whereby the plots are intended to be developed as the company’s headquarters, including but not limited to certain core facilities such as filming studios and an MBC experience and visitor center (the Permitted Uses) – the plots shall not be used, exploited or disposed of for any other purposes, unless otherwise agreed between the parties in the definitive development works agreement or any other agreement entered into between the parties in this regard.

The agreement also includes several provisions and obligations relating to the ownership of the plots, including the company's obligation to comply with the master community documentation of the Diriyah project, leasing requirements and restrictions, along with the company's responsibility for payment of any taxes or fees associated with the transfer of the plots thereto (if any) and payment of all service fees, outgoings and utilities applicable thereto (as an owner of plots in the Diriyah project.

Furthermore, the transfer of the plots (including all rights and obligations connected thereto) to the company (or the relevant subsidiary) will be completed upon the issuance of a title deed(s) for the plots in its name. The plots are planned to have a total area of approximately 138,352 square meters.

The agreement shall be effective from its signing date and shall remain valid for the period of the company's ownership of the plots.

According to the company, the financial impact relating to the transfer of the plots will be reflected in its financial statements following their transfer. The financial impact relating to the definitive development works agreement, however, will be ascertained following execution of the agreement and announced accordingly.

MBC Group also said that it will continue with Diriyah Co. their discussions to agree the detailed terms and conditions of the definitive development works agreement, adding that once the agreement is signed, it will make the necessary announcements in accordance with applicable laws and regulations.