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Emaar Al Waseel Al Mutamayza Co., a 60%-owned subsidiary of Banan Real Estate Co., has entered into a binding 20-year agreement with Armah Sports Co. to develop and lease a commercial sports club in the Al-Qayrawan district of Riyadh. The total contract value is set at 110.40 million SAR, excluding VAT, translating to an annual lease structure of 5.52 million SAR across the two-decade tenure.
Under the terms of the deal, Banan's subsidiary will construct and fully equip the facility over a estimated 24-month period, after which Armah Sports will assume operational control. Armah will run the site as a male fitness club under its tech-focused 'B_FIT' brand, furthering its corporate strategy to expand prime physical locations and leverage non-equity funding models for infrastructure growth.
Financially, Banan expects to realize income from development fees during the construction phase, followed by long-term recurring rental revenues once the facility opens. Meanwhile, Armah anticipates operational returns upon completion. This project underscores the strong demand for commercial real estate and health infrastructure in Saudi Arabia, driven by Vision 2030 initiatives supporting lifestyle and wellness development.
