Saudia Dairy and Foodstuff Co. (SADAFCO) [2270.SE] completed a transaction with Saudi Factory for Electrical Appliances Company Ltd. (SELECT) for SAR16.5mn to acquire the lease rights for the land in Jeddah’s First Industrial City, after the deal was approved by Saudi Industrial Property Authority (MODON). The two parties had signed a memorandum of understanding (MOU) on 27 January that also includes the purchase of the buildings on the land. The move comes as part of SADAFCO’s efforts to enhance its manufacturing, logistics and warehousing capabilities as the land is within close proximity to its existing two factories in Jeddah. SADAFCO will finance the deal internally, once finalised. SADAFCO has already paid SAR8.7mn to SELECT and will make the remainder of the payment before 31 July 2016. The disclosure added that the annual lease rental payable to MODON is SAR60/sqm, with one year’s payment made in advance (SAR1.45mn). SADAFCO is planning to develop a new manufacturing and logistics facility on the land; however, further details are not yet available. (Company disclosure)     SADAFCO: SAR156.20 as of 01 June 2016, Rating: Buy, FV: SAR188.00 per share, MCap: USD1,354 million, SADAFCO AB / 2270.SE