REG - Dar Global PLC - Investments in Saudi Arabia for US$390 million

Dar GlobalAnnouncement

17/03/2025 11:00

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RNS Number : 9521A  Dar Global PLC  17 March 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED FOR THE PURPOSES OF
ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU NO. 596/2014), AS IT FORMS PART
OF THE UNITED KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018, AS AMENDED.

 

 

 For immediate release  17 March 2025

 

Dar Global plc

('Dar Global', the 'Company' or the 'Group')

 

Strategic investments in Saudi Arabia for US$390 million

 

Dar Global, the London-listed luxury real estate developer, has today entered
into agreements to invest in two strategic development land sites in Jeddah
and Riyadh, solidifying the Group's commitment to Saudi Arabia's rapidly
attractive and growing real estate market. These acquisitions are valued at
US$390 million and include fully developed plots in Jeddah, and prime plots
for development in Riyadh. These strategic acquisitions follow the successful
launches of Trump Tower Jeddah and Neptune by Mouawad in Riyadh, demonstrating
Dar Global's confidence in the Saudi Arabian market. The acquisition
consideration will be settled from either the cash generated from sale of the
schemes or issuance of Dar Global Plc shares, or a combination of cash and
shares, on or before 60 months from the signing of the definitive agreements.

 

The Jeddah acquisition involves 243 fully developed plots, acquired for
approximately US$93 million from a local Saudi landowner, within an 863,000
sq.m. master-planned community.  Located minutes from key Jeddah attractions,
these plots offer a modern living environment and will be marketed directly to
retail customers. This strategic acquisition is projected to generate
significant profit for the Group over the next two years, with an estimated
Gross Development Value ('GDV') of approximately US$200 million, reinforcing
Dar Global's strategy to address the growing demand for real estate in Saudi
Arabia for both local and international markets.

 

The second acquisition in Riyadh involves the acquisition of 190 plots
covering approximately 466,877 sq.m. for US$297 million from Dar Al Arkan Real
Estate Company ('Dar Al Arkan'), the Group's parent company and majority
shareholder,  Strategically located in the north of Riyadh, the Riyadh plots
are also conveniently located near key city landmarks.  Dar Global intends to
capitalise on its recent activity levels in the area and resell the project
through its sales offices and broker network in the Kingdom and the globe. The
project will have an estimated GDV of approximately US$800 million.

 

As Dar Al Arkan is the majority shareholder in Dar Global, the Riyadh
transaction constitutes a related party transaction under Rule 7.3 of the
Disclosure Guidance and Transparency Rules ('DTRs'). Accordingly, in
compliance with Rule 7.3.8R of the DTRs, the Riyadh transaction has been
approved by the directors deemed to be independent of Dar Al Arkan, being
David Weinreb, Maurice Horan, Richard Stockdale and Ziad El Chaar.

 

Additionally, given the related-party nature of the Riyadh transaction, Dar
Global appointed valuers to provide an independent valuation, to enable an
assessment of the fair market price of the plots. The transactions have been
undertaken in ordinary course of business and on an arm's length basis.

 

Rothschild & Co is acting as financial adviser to Dar Global on both
acquisitions.

Ziad El Chaar, CEO of Dar Global, said: "Dar Global's proven success in
similar transactions, including collaborations with landowners, government
entities, and world-renowned luxury and hospitality brands, has established
the Company as a leader in developing bespoke, high-end living and investment
opportunities to affluent, globally mobile customers.  These latest
acquisitions reinforce Dar Global's position as an evolving key player in
Saudi Arabia's dynamic real estate market and mark a continued commitment to
pursuing high-value opportunities in strategic locations across the Kingdom."

 

- Ends -

 

For further enquiries, please contact:

 

 Dar Global plc  IR@darglobal.co.uk (mailto:IR@darglobal.co.uk)

 

 Burson Buchanan (Financial Communications)  Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham / Simon Compton       darglobal@buchanancomms.co.uk (mailto:darglobal@buchanancomms.co.uk)

                                             www.bursonbuchanan.com (http://www.bursonbuchanan.com)

 

Notes to editors:

 

Dar Global PLC is a highly differentiated international real estate business.
It focuses predominantly on developing real estate projects comprising second
homes for internationally mobile customers, in some of the most desirable
locations across the Middle East and Europe, including Jeddah and Riyadh in
Saudi Arabia, downtown Dubai, Muscat in Oman, London and the Costa del Sol
region in the South of Spain.

 

Dar Global was originally established to house and develop the international
assets of Dar Al Arkan Real Estate Development PJSC ('DAARE'), a leading real
estate developer in the Kingdom of Saudi Arabia.  Listed on the Saudi Stock
Exchange since 2007, Dar Al Arkan has delivered over 15,000 residential units
with total assets of c. US$7.5 billion.

 

The Company intends to expand its focus to hospitality assets. The aim is to
acquire or build hotels and sell them after a period of three to five years of
operation once the hotels' or resorts' revenue streams stabilise. Target
markets include the US, Spain, Dubai, Maldives, Athens, Saudi Arabia, and
London.

 

Dar Global was admitted to the Main Market of the London Stock Exchange on 28
February 2023. For more information, please visit www.DarGlobal.co.uk
(http://www.DarGlobal.co.uk)

 

Other Notices:

 

N.M. Rothschild & Sons Limited ('Rothschild & Co'), which is
authorised and regulated by the Financial Conduct Authority in the United
Kingdom, is acting exclusively for Dar Global and for no one else in
connection with the subject matter of this announcement and will not be
responsible to anyone other than Dar Global for providing the protections
afforded to its clients or for providing advice in connection with the subject
matter of this announcement.

 

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