SICO Capital Company Announces a Material Development to SICO Saudi REIT Fund
|Introduction||SICO Capital Company Announces a Material Development to SICO Saudi REIT Fund|
|Description of the Event||SICO Capital Company, (“fund manager”) announces that it has received a notification on 26 December 2021 AD from Eskan Development and Investment Company, as the tenant of one of the properties owned by the Saudi SICO REIT Fund (Eskan Tower 4 and Eskan Tower 6), that it does not wish to renew the lease contract concluded with the Fund in accordance with the lease contract which stipulates that the tenant has the right to cancel the contract after the lapse of a period of five years from the date of the beginning of the lease term “December 27, 2017 AD” (the initial term) as stipulated in the lease contract (...the two parties have the right to cancel the lease contract after the initial term” provided that the directive Reasonable notice one year before (365 Gregorian days) from the date of the end of the initial term...) and accordingly, the end of the contract term will be next year on December 27, 2022 AD.|
|The Impact Caused by the Event||Due to the fact that the end of the lease contract (Eskan Tower 4 and Eskan Tower 6), which expires next year on December 27, 2022 AD, the fund manager is currently unable to accurately determine the impact, which depends mainly on the performance of the hospitality sector in Makkah in the future, and the fund manager will Announcing any material future developments in relation to future operating and lease contracts.|
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