Saudi Real Estate Company (Alakaria) has announced that it has signed an agreement with AlJazira Bank to secure sharia-compliant bridge financing facilities worth $109 million towards the purchase of a key plot of land in the AlMarjan region of the Kingdom.

In a filing to Tadawul, the Saudi bourse, the company said that the banking facilities will be used to finance a part of the land’s purchase. The plot, located in Al Qadisiyah District/AlMarjan, is worth a total of $193.8 million (excluding the real estate transaction tax and broker’s commission).

The guarantees offered for the financing include a promissory note with an amount of $106.6 million and a pledge of the financed real-estate in favour of Al Jazira. An amount of $102.1 million was withdrawn from the above financing value to pay part of the land plot, the statement added.

In a further update, the company announced to the shareholders that the purchase of the land’s price was paid in full, and emptying it in favour of the company have been finalised & completed.