Jadwa Investment Company Announces a Material Development to Jadwa REIT Saudi Fund
|Introduction||Jadwa Investment Company (“Fund Manager”), in its capacity as the manager of the Jadwa REIT Saudi Fund (the “Fund”), announces the signing of sale and purchase agreement for Al Fanar complex the commercial part only (the “property”) located in Al Rawabi district in Khobar on 28/12/1443H corresponding 27/07/2022G, after obtaining the approval of the fund board on the property sale plan.|
|Description of the Event||The sale price is (SAR 140,000,000). It is also worth noting that the fund had acquired the property in February of 2018 and enjoyed an annual net rent yield of 8.25% over this period. |
Knowing that Al Fanar complex consists of commercial and residential components, where the Fund has sold only the commercial component.
This sale process provides more flexibility for the fund and its financial position, as it is possible to use the proceeds of the sale for many options, for example, but not limited to: using them to acquire more accretive income-generating real estate assets, or using the proceeds to partially pay-off the existing bank facilities which will alleviate the financial liabilities of the Fund.
The Agreement is subject to completing the required due diligence by the buyer. We would like to confirm that there is no related party involved in this sale process.
|The Impact Caused by the Event||It is expected that the impact will be positive on the fund as the financial impact of the sale will be included in the company's financial statements for the second half of this year 2022.|
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