Saudi Industrial Services Co (SISCO) announces signing of a lease agreement to build a Logistics Park under Build, Operate, and Transfer (BOT) basis by its subsidiary Saudi Trade and Export Development Co (TUSDEER), which has share capital of SAR 140 million and SISCO owns 76% of it. The agreement was signed on 09/01/1436 H corresponding to 18/06/2015 G, between TUSDEER and Jeddah Development and Urban Regeneration Co. (JDURC) for lease of approximately 636,780 square meters area in Al-Khumra zone of South Jeddah for a period of 30 years. The development of the Logistics Park will cost approximately SAR 550 million during next 8 years, which will be financed through retained earnings and new loans.
The project consists of an integrated warehousing complex along with supporting services and facilities for them, based on latest design and construction specifications according to international standards. The logistics park will provide a safe and secure storage and distribution center for TUSDEER customers.
Signing of this agreement is a testament to TUSDEER expertise in development of warehousing and distribution hubs, which has already been reflected in the success of Bonded and Re-export zone in Jeddah Islamic Port. This development also fits in to SISCO overall strategy of building on its success of past projects and diversification of its business portfolio.
This does not have any significant impact on financial results of the current year.