SAL edges closer to Falcon City zone debut: SAL Saudi Logistics Services has finalized a lease agreement with PIF’s entertainment and investments arm Sela regarding a plot of land in Falcon City in north of Riyadh, according to a Tadawul disclosure. The sub usufruct agreement increases the leased land by some 12k sqm beyond the initial agreement, bringing the total land plot area to roughly 1.6 mn sqm.

The purpose: SAL will use the plot to develop a SAR 4.2 bn logistics zone that includes state-of-the-art Class A warehouses, operational facilities, multimodal connectivity, and smart tech. The zone will provide a new revenue stream, which is forecast to reflect in the SAL’s earnings once the project is completed.

On the lease agreement: The lease, whose preliminary agreement was signed in March, stipulates that SAL will lease the land for a period of 30 years — with the option to extend an additional 15 years and a grace period of three years. SAL is taking the land at a lease rate of SAR 16 per sqm, with an annual inflation rate set at 1.5% following the grace period. SAL will also pay Sela SAR 25 mn for electricity, access roads, and infrastructure costs.

About Falcon City: The 14.4-mn-sqm city project is a next-generation urban development owned by Sela and is home to the Saudi Falcons Club, a cultural and heritage landmark in the Kingdom. The club boosts tourism and cultural engagement by hosting local and international events, as well as programs and activities.

ALSO- SAL approved plans to launch a SAR-denominated sukuk program to support its expansion and capital spending, it said in a disclosure to Tadawul yesterday. JPMorgan Saudi Arabia and SNB Capital have been appointed as arrangers for the program, which will proceed following regulatory approvals — with further details to be announced once the program is finalized.

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