Riyadh – Mubasher: Red Sea International Company on Monday announced that one of its subsidiaries has signed an agreement with Direcional Engenharia, that specialises in the affordable housing sector, to extend providing technical services for two more years starting from 28 February 2017.
“[Red Sea’s subsidiary] has evaluated numerous housing projects during the past two years and prepared the required feasibility studies for these projects. However, it could not identify a viable investment opportunity to execute any of these potential projects,” Red Sea said in a bourse filing.
Accordingly, Red Sea and Direcional Engenharia signed a two-year extension contract on 12 June 2017.
The first agreement, a technical service agreement (TSA), will provide Red Sea’s subsidiary with access to Direcional Engenharia’s technical experience and know-how in executing and developing affordable housing projects in Saudi Arabia.
Red Sea also stated that it could not currently determine the future financial impact of the agreements; however, any necessary disclosures will be made to public in the event of any material developments, noting that there are no related parties involved in this transaction.
Red Sea’s stock closed Monday in the red, falling 2.63% to SAR 19.98.
