MBC Group Company announces the signing of a Land Transfer Agreement with Diriyah Company
| Element List | Explanation |
|---|---|
| Introduction | MBC Group Company (the “Company”) announces the signing of a Land Transfer Agreement with Diriyah Company (“DC”) in relation to the transfer and development of certain plots within the Diriyah Project in the City of Diriyah (the “Agreement”). |
| Date of Announcement of the Award | 2025-05-08 Corresponding to 1446-11-10 |
| Contract Subject Matter | Transfer of certain plots within the Diriyah project. |
| The Entity with Which the Contract was Signed | Diriyah Company |
| Date of Signing the Contract | 2025-05-08 Corresponding to 1446-11-10 |
| Contract Value | Not applicable. |
| Contract Details | The parties have agreed, pursuant to the Agreement, to transfer certain plots within the Diriyah project in the City of Diriyah (the "Plots") to the Company or to a wholly owned subsidiary of the Company. The Plots shall thereafter be developed by DC pursuant to a detailed development works agreement to be entered into between the Company (or the relevant subsidiary) and DC in due course (the "Definitive Development Works Agreement"), which agreement shall set out the respective rights and obligations of the Company (or the relevant subsidiary) and DC with respect to such development works on the Plots. DC will, under the Definitive Development Works Agreement, carry out the development, design and construction works with respect to the Plots based on a timeline to be agreed between the parties. 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 headquarters of the Company, including but not limited to certain core facilities such as filming studios and an MBC experience and visitor centre (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). 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 one hundred and thirty-eight thousand and three hundred and fifty-two square meters (138,352 m2). |
| Contract Duration | The Agreement shall be effective from its signing date and shall remain valid for the period of the Company's ownership of the Plots. |
| Financial Impact and the Relevant Period | The Financial Impact relating to the transfer of the Plots will be reflected in the financial statements of the Company following transfer thereof. The financial impact relating to the Definitive Development Works Agreement, however, will be ascertained following execution of the Definitive Development Works Agreement and announced accordingly. |
| Related Parties | None. |
| Additional Information | The Company and DC will continue their discussions to agree the detailed terms and conditions of the Definitive Development Works Agreement. Once the Definitive Development Works Agreement is signed, the Company will make the necessary announcements in accordance with applicable laws and regulations. |
| Attached Documents |  |
