Riyadh – Mubasher: Miral Medical Clinics Company has disclosed significant amendments to a lease agreement for its upcoming dental branch in Riyadh, building on an initial announcement made on 24 November 2024, according to a bourse disclosure.
The update details a postponement of the contract’s commencement date, a reduction in the total rental value, and a revised timeline for the facility’s expected financial impact on the company’s accounts.
The lease agreement with Abdulrahman Mohammed Al Ateeq Real Estate Office pertains to a strategic expansion for Miral Medical Clinics in Al Arid district of Riyadh, specifically located on Prince Khalid bin Bandar bin Abdulaziz Road.
The facility spans 881.25 square meters and is designated to house a specialized dental center providing a comprehensive range of medical, therapeutic, and cosmetic dentistry services.
According to the latest regulatory filing, the company entered into a formal amendment of the contract on 3 June 2026.
Under the revised terms, the official commencement date of the 10-year lease has been rescheduled to 10 September 2026 compared to the previously established start date of 1 June 2025.
The company clarified that the delay was necessitated by the lessor’s inability to deliver the premises according to the original schedule. The primary obstacles cited included the failure to meet specific contractual obligations and a delay in fulfilling municipal requirements essential for securing the necessary operating licenses for the site.
In conjunction with the revised timeline, the financial terms of the agreement have been adjusted downward. The total value of the 10-year contract has been reduced to SAR 17.25 million, inclusive of Value Added Tax (VAT), shifting from the original valuation of SAR 18.40 million.
Consequently, the annual rental obligation has been lowered to SAR 1.72 million including VAT, down from the previous annual figure of SAR 1.84 million.
Regarding the accounting of payments, Miral Medical Clinics confirmed that it had already remitted the rental amount for the first year under the terms of the previous agreement. This payment will now be applied toward the first year of the new contract term beginning in September 2026. Any remaining balance from the initial payment will be carried forward to the subsequent year, with regular annual payments resuming thereafter on a Gregorian calendar basis.
The company anticipates that the financial impact of this lease and the subsequent operation of the new branch will begin to manifest during the third quarter (Q3) of 2026, coinciding with the start of actual operations.
Miral Medical Clinics also reaffirmed that the agreement does not involve any related parties and emphasized its commitment to disclosing any further material developments regarding this project as they arise.
This expansion remains a core component of the company’s growth strategy within the healthcare sector in the capital city.
It is worth noting that the listed company will be electing five members to lead the board of directors during the session scheduled to run until October 2030.
