Umm Al Qura for Development and Construction Company has announced that it had signed agreements to sell two plots of land within its Masar Destination development in Makkah for a combined value of about SAR436 million ($116.1 million). The buyers plans to develop a hospitality tower on the site.

On the first agreement, Umm Al Qura said it was sealed with Makkiyoon Urban Developers Company for sale of a 2,750-sqm plot in Zone 2 of Masar Destination for SAR183.7 million. The plot faces the development’s boulevard and has a book value of SAR82.7 million, said the developer in its Saudi bourse filing.

The buyer plans to develop a hospitality tower on the site, it stated. 

The transaction is expected to have a positive impact on its liquidity and financial results. Proceeds will be used to finance working capital and ongoing projects.

Separately, Umm Al Qura said it had executed a previously announced reservation and sale agreement with Sanduq Sharq Alaseemah Company for a 3,341-sq-m plot in Zone 2 of Masar Destination for SAR251.8 million.

The second plot faces King Abdulaziz South Road and will also be developed into a hospitality tower. UAQ said the sale agreement was signed on Sept. 30 following an update to the land subdivision plan to align with the project's requirements.

The plot has a book value of 124.0 million riyals, and proceeds from the sale will be used to finance working capital and ongoing projects, it added.