Riyadh – Mubasher: Saudi Automotive Services Company, known as SASCO, has announced the receipt of an official expropriation notice from the Royal Commission for Riyadh City regarding a portion of its real estate holdings in the Arqa District.
The expropriation, which affects a service station site located on Prince Mishal bin Abdulaziz Road, is being carried out for public utility purposes to facilitate the second phase of the Circular and Main Roads Axis Project.
The company has been informed that the estimated compensation for the seized portion of the land amounts to approximately SAR 25.93 million.
According to the regulatory filing released by the company, the notice was received on 29 June 2026, marking a significant development in the company’s regional asset management.
The specific site in question consists of two adjacent land parcels that currently host a single integrated fuel and automotive service station.
This location is situated strategically within the Arqa District of Riyadh, a neighborhood currently undergoing significant infrastructure upgrades as part of the capital’s broader urban development initiatives.
The expropriation is a direct result of the Prince Mishal bin Abdulaziz Road development project, which falls under the second phase of the Royal Commission for Riyadh City’s plan to enhance the efficiency of the city’s circular and primary road networks.
The government’s infrastructure mandate requires the acquisition of approximately 38% of the total area of the station.
Despite the reduction in total land size, the company has confirmed that the remaining portion of the site will continue to be utilized for commercial operations.
SASCO detailed the financial standing of the asset, noting that the total book value for the entire station, including both adjacent plots of land, stands at approximately SAR 30 million as of the current date. The estimated compensation of SAR 25.93 million specifically covers the 38% portion designated for expropriation.
This valuation reflects the assessment conducted by the relevant authorities in accordance with the regulations governing the acquisition of real estate for public interest.
At the end of March 2026, SASCO turned to net losses valued at SAR 23.70 million, compared to net profits of SAR 4.28 million a year earlier
