Banan Real Estate Signs SAR 110.4 Million Sports Club Contract in Riyadh

Banan Real Estate Company has announced that its subsidiary, Emaar Al-Waseel Al-Mutamayyizah Company, has signed a SAR 110.4 million agreement with Armah Sports Company for the development and long-term lease of a fully equipped sports club in the Al Qirawan (Al-Qayrawan) district of Riyadh. The agreement, signed on September 5, 2026, has a total value of SAR 110.4 million, excluding VAT, and covers the development of the sports club on land owned by Emaar Al-Waseel Al-Mutamayyizah. Under the agreement, Emaar Al-Waseel Al-Mutamayyizah will undertake the development of the sports club to a fully completed and operationally ready condition. The development scope excludes movable furniture and sports equipment. Following completion and handover, Armah Sports Company will lease and operate the sports club under a long-term lease agreement spanning 20 years, with the contract binding on both parties. The agreed annual rental value is SAR 5.52 million, excluding VAT, resulting in an aggregate rental value of SAR 110.4 million, excluding VAT, over the 20-year lease period. The sports club development is expected to be completed within approximately 24 months. Upon completion, the project is expected to generate recurring rental income for Banan Real Estate through its 60% ownership stake in Emaar Al-Waseel Al-Mutamayyizah, in addition to direct development income to be generated by Banan from carrying out the development works. The agreement marks another step in the development of Riyadh’s sports and lifestyle infrastructure, supporting the expansion of modern sports facilities and contributing to the Kingdom’s broader objectives for enhancing quality of life and private-sector participation in real estate and sports development.