Bloomberg: "Aramco" is considering raising over $10 billion from its real estate assets

SadaNews - Saudi "Aramco" is considering plans to raise billions of dollars from its real estate assets, including a massive complex that houses its headquarters in the Eastern Province of the Kingdom.

According to sources familiar with the matter, who requested to remain anonymous due to the confidentiality of the information, the Saudi oil giant has held preliminary discussions regarding a potential (sale leaseback) deal, aiming to raise no less than $10 billion.

"Aramco" is considering executing the deal, which involves "sale and leaseback (that ends with ownership)," allowing it to free up liquidity from its real estate assets while retaining the right to use those properties, according to the sources.

Deals on the path of "Aramco"

The anticipated real estate deal may include the Dhahran complex in the Eastern Province, a vast residential and professional community that houses thousands of employees. "Aramco" is also working with a financial advisor on the deal, which is expected to attract the interest of real estate and infrastructure funds, according to some insiders.

This deal would rank among the largest since the establishment of "Aramco." A consortium led by "BlackRock" signed a $11 billion lease (financial) agreement last year for facilities servicing "Aramco's" Jafurah gas project in the Kingdom.

In parallel with its real estate asset plans, "Aramco" is also working on other deals, including the sale of a stake in its oil export and storage terminals. These endeavors are particularly important at present as the Kingdom redirects its oil shipments to the Red Sea, amid the ongoing effective closure of the Strait of Hormuz due to the Iranian war.

In a separate file, the company is working with a financial advisor on deals related to gas-powered power plants, and it has also had preliminary discussions regarding a potential deal for its water infrastructure operations, according to some insiders.

Discussions are still ongoing, and no final decisions have been made yet. A representative from "Aramco" did not respond to a request for comment.

"Aramco" seeks to raise billions

"Aramco" is the world's largest exporter of crude oil and a cornerstone of the Saudi economy, as the company's energy revenues and massive distributions support the Kingdom's economic transformation plans, which are facing increasing pressures due to rising costs and escalating conflict in the region.

The company maintained its dividends at $21.9 billion during the first quarter, a level that exceeded free cash flows, which amounted to $18.6 billion during the same period after accounting for investments and expenses.

These plans reflect the latest indication of companies continuing to move forward with billion-dollar deals despite the war, which has witnessed Iran targeting oil and gas infrastructure throughout the Middle East. In Saudi Arabia, Tehran has targeted major refineries, oil fields, and a pumping station on the vital East-West pipeline.