CATRION Catering Holding Co. — Capital/Financing Update 2016

Apr 4, 2016

Announcement for Saudi Airlines Catering Company lease contract with associate company

6004 · 04/04/2016 08:41:49 · Announcement #41885 · View on Saudi Exchange

Announcement for Saudi Airlines Catering Company lease contract with associate company

Saudi Airlines Catering Company (SACC) announces the signing of a lease contract with Saudi Airlines Real Estate Development Company (SARED) on 3rd April 2016 for the purpose of investment in the Saudia Hotel and its premises, including its entertainment center, which is located in the southeast of Saudi Airlines compound on Prince Sultan Road in Alkhaldiyah district.

SACC shall renovate, prepare, furnish, and run the Saudia Hotel and its entertainment center, which is comprised of 8 buildings, each of which contain 12 suites giving a total of 96 suites.

SACC shall also offer additional services such as running the entertainment center and providing catering and laundry services. The lease term shall be 7 years effective from 1st April 2016 and ending on 31st March 2023 and the lease rate shall amount to 2,400,000 SR (two million and four hundred thousand Saudi Riyals) with an annual increment of not more than 5% effective from the 5th year of the contract. SACC shall use its operating cash flow for the financing of the project, with a positive expectation for its revenue starting from the fourth quarter of 2016.

The Saudia Hotel is owned by Saudi Arabian Airlines which is one of the major shareholders of SACC and an associate company. SARED, an affiliate company to and owned by Saudi Arabian Airlines, runs and administers the Saudia Hotel. The authentication of the lease contract shall occur at the upcoming General Assembly meeting.

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