Muscat Capital Company Announces the Occurrence of Specific Event to Al Mashaar REIT
|Introduction||Muscat Capital ("the Fund Manager") has announced that Al Mashaar REIT has signed a Memorandum Letter to invest SAR 135 million in a Commercial building known as “i- Offices” in the City of Riyadh note that the period specified for completing the procedures for transferring ownership of real estate is 20 days from the date of signature, which can be extended with the consent of both parties.|
|Description of the Event||The Property comprises of 3 Class A income generating Commercial office Towers located on a prime location in Thumama Road, next to the prestigious Aliya plaza Complex in the District of Rabeea. Al Mashaar REIT fund intends to acquire the three towers on a fully occupied basis for a property acquisition price of SAR 135 Million while the annual total rental would be SAR 10.45 Million Per Annum. The total land area is 6155 Square Meters while the built up area is 23215 Square meters. The Gross Leased area is 10,700 Square meters. The property has three tenants, out of which two include Al Rajhi Takaful and Amlak International. Mashaar REIT fund will acquire the property on a 100% occupancy basis. This acquisition is expected to be financed from the currently available Shariah Compliant loan facility signed between Riyad Bank and Al Mashaar REIT fund. The Fund Manager is expected complete all formalities relating to the acquisition within the next three week period.|
|The Impact Caused by the Event||The financial impact of the deal is expected to be positive in general, which will be reflected in the results of the fund during the year 2021 AD, subsequent to completing the legal and administrative procedures related to the deal.|
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