Al-Arkan, the Kingdom's largest property developer, will use cash on hand and proceeds from land sales to repay the bond, or sukuk, maturing in July, Chief Financial Officer Andy Raheja, told Reuters in an interview on Monday. 

It is also in talks with lenders to refinance a smaller SR700 million ($190 million) loan facility with an asset-backed Islamic facility using its Al-Qasr Mall in Riyadh as collateral.      

Last week a website questioned Dar's ability to repay upcoming debt, including the sukuk. The website "Dar Al Arkan Crisis" published documents alleging corporate malpractice, regulatory breaches and fraud. 

Raheja dismissed all the allegations. 

"We do not need to rely on any external help from the government or from our equity investors to achieve our sukuk repayment neither are we seeking it," he said at the company headquarters in Riyadh.  

Raheja said Dar will repay the sukuk with SR2.5 billion in cash and the rest coming from land sales. 

He said the funds would be raised over the next four months. 

Al-Arkan sold 1 million square meter of land in the fourth quarter, earning SR800 million. 

"We expect to sell similar levels in the first two quarters (of 2012), which will be adequate to support the sukuk repayment," Raheja said. 

The developer has about 35 million square meters of land and could offload more in the future if needed. 

"Our land bank can be liquidated at very short notice to achieve any liquidity objectives we have, but naturally we don't want to sell everything or anything before it is mature," he said. 

Al-Arkan said on Monday that a sample of its real estate portfolio was revalued at a 53 percent premium to its book value of SR9.7 billion ($2.59 billion) by third-party firms hired by the developer. This sample of assets is now valued at SR14.8 billion. 

Shares of the firm ended unchanged on Tuesday. The stock plunged last week after the website accused the company of financial misconduct but has gained 9.8 percent since the start of this week on Saturday. 

In October, the Public Investment Fund (PIF) approved a SR4 billion facility to finance one of Dar's biggest projects, the Qasr Khozam development in Jeddah, estimated to cost SR12 billion. 

Raheja said the company is in talks with banks to secure another SR2 billion for the project.  

"We would like to believe that within the course of two to three quarters, we should be able to gather up the remaining funds to finance the full land acquisition program," he said.