Alandalus Property Co. Announces an update on The latest developments related to the Company’s joint venture with Dr. Sulaiman Al Habib Medical Holding Group in Jeddah (Dr. Sulaiman Al Habib Hospital)
|Previous Announcement||The latest developments related to the Company’s joint venture with Dr. Sulaiman Al Habib Medical Holding Group in Jeddah (Dr. Sulaiman Al Habib Hospital)|
|Date of Previous Announcement on Tadawul's Website||2018-07-30 Corresponding to 1439-11-17|
|Progress||2.5 % of all project phases|
|Event's Expected Completion Date||The project is expected to be completed in the second quarter of 2023. Accordingly, the project will become operational in the third quarter of the same year.|
|Reasons for Exceeding the Announced End Date||Delay was due to the time taken to review the project architectural designs in order to increase the built up area, due to which the adjusted building permit and other government approvals, related to the project works, were delayed.|
|Expenses Related to the Event, Whether They Changed or Not and Justification||According to the latest report received from the developer partner (Dr. Sulaiman AlHabib Medical Services Group), the expected total cost of this project is SR 1.56 billion |
According to said report, the change in the expected cost comparing with the previously announced amount, was due to increasing the project built up areas in line with the amended designs, such as parking, emergency department, number of clinics and private rooms, in addition to nurses accommodation. As a result, execution costs increased, including foundations, structure, exterior facades, interior glass, insulation, woodwork, elevators, electromechanical works, the external works, etc.
|Impact of the Delay on the Company's Financial Results||There is no financial impact of this delay on the financial results of the Company.|
|Additional Information||According to the developer partner’s report: |
As the excavation contractor was previously appointed, 50% of the preliminary works (excavation and site preparation) has been completed.
The main contractor has been appointed on 01/01/2020G to build the construction structure of the project. The construction structure works are expected to be completed in the fourth quarter 2021G.
This project will be funded mainly by bank loans in addition the partners ’own resources. The Company will announce any material developments related to this project in due course.
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