Riyadh – Mubasher: Armah Sports Company has signed a major land lease agreement in Riyadh to develop two new sports clubs, according to a bourse filing.
The agreement was reached with the heirs of Mohammed Suliman Al Yahya for a plot located in Al Narjis district, under a 20-year term commencing after the 24-month grace period from the handover date starting from the date of land receipt.
This two-year window is intended to accommodate the construction phase of the project.
Armah noted that the project is a central component of the company's strategic expansion plan, which focuses on securing prime locations to drive growth and achieve targeted financial returns through its proprietary B-FIT brand.
Upon the lease agreement that was finalized on 21 May 2026, a site spanning 5,821 square meters will be developed on Abu Bakr Al Siddiq Road, where Armah will invest in the construction and operation of two separate sports facilities, one dedicated to men and the other to women.
Both clubs will operate under the B-FIT brand, a trademark wholly owned by Armah, to provide integrated, full-service athletic facilities that utilize technological innovations to offer a distinctive sporting experience for its members.
The contract was signed with the 11 heirs of Mohammed Suliman Al Yahya, specifically Saad, Noura, Badriya, Ibtisam, Layla, Munira, Fatimah, Rana, Abdul Rahman, Hamad, and Suliman Mohammed Suliman Al Yahya.
From a financial perspective, the commitment is significant. The total value of the lease over its entire duration, excluding Value Added Tax (VAT), exceeds 36% of Armah's total annual revenues as recorded in its audited financial statements for the 2025 fiscal year.
While the company does not expect an immediate impact on its current financial results, the positive financial effects are projected to materialize once the project is completed and the clubs begin active operations.
To execute the development, Armah intends to appoint a specialized contractor to build the facilities according to the specific technical standards and architectural plans already approved by the company.
The construction process is estimated to take approximately two years. This dual-club development is part of a broader series of projects aimed at establishing integrated sports environments in key urban locations.
Meanwhile, the selection of Al Narjis district on Abu Bakr Al Siddiq Road aligns with the company's stated objective of expanding through high-value sites. By establishing a long-term presence in this area, Armah is positioning itself to capture demand in a growing residential and commercial corridor of the capital.
The company noted that it will continue to provide updates to shareholders regarding any material developments related to the lease or the progress of the construction project as they occur.
It is worth noting that Armah plans to transfer from the Parallel Market (Nomu) of the Saudi Exchange (Tadawul).
