الإعلام

Description of the event:

Subsequent to the announcement made by Jadwa Investment Company (the "Fund Manager") issued on the date of 30/11/2020, which includes the investment of Jadwa REIT Saudi Fund the amount of 450 million Saudi riyals in a closed-ended Shariah-compliant real estate investment fund, where the initial offering has been closed and the acquisition of real estate properties has been completed. The fund manager announces the details of investing in private fund as follows:

• Jadwa REIT Saudi Fund invested an amount of 450 million Saudi riyals in Real Estate Investment Fund, a closed-ended Shariah-compliant real estate investment fund. The objective of Real Estate Investment Fund is to provide investors with a stable stream of income and capital appreciation in the medium and long term through the acquisition of income-generating real estate assets in the Kingdom of Saudi Arabia.
• Real Estate Investment Fund has a term of 10 years, which can be extended for two additional periods of five years each.
• Real Estate Investment Fund targets a fund size of 10 billion Saudi Riyals, while the initial closing successfully raised the amount of 2.8 billion Saudi riyals.
• Real Estate Investment Fund acquisitions were funded by accepting in-kind and cash subscriptions in the amount of 1.5 billion Saudi riyals, and the remainder was funded by obtaining bank loans amounting to 1.3 billion Saudi Riyals from Saudi banks for a period of five years, provided that the full amount of the financing is to be paid at the end of the fifth year.
• The initial portfolio of assets for Real Estate Investment Fund comprises of income-generating properties as per the below details:
  1. Al Nakhla Residential Compound: a private residential compound located in the Qurtubah districts in Riyadh, the compound is built on a land area of 259,797 sqm and consists of 1,136 residential units of various sizes and types, and is considered one of the most prominent residential complexes in the city of Riyadh. Al Nakhla Residential Compound is managed by Al Nakhla City Company, which is a company specialized in managing and operating closed residential compounds. The compound has been witnessing an incremental and continuous growth in performance and occupancy rates since its inception in 2015. The property was acquired at a purchase price of 1.8 billion and an expected net return of 8.93%.
  2. REIF Flats: A residential apartment complex located in Qurtubah district in Riyadh, and is right in front of the Al Nakhla residential compound, REIF Flats is built on a land area of 8,787.5 sqm and consists of 133 apartments. The property was acquired at a purchase price of SR 87 million, and will be operated after the completion of its development.
  3. Seven commercial, office and service towers in the "Laysen Valley" project: the property consists of five commercial towers, and two service towers (parking) in the "Laysen Valley" project located in the intersection of King Khaled road with Al Urubah Road, which is one of the upcoming and most prominent real estate projects in the city of Riyadh. Laysen Valley project is a mixed-use complex, including commercial, office, hotel and residential towers. The net leasable areas for the towers that were acquired by Real Estate Investment Fund amounts to 42,095 sqm, and were leased under new contracts to prime tenants. The property was acquired at a purchase price of 650 million and an expected net return of 8.32%.

The Impact Caused by the Event:

It is expected that the result of this transaction will be positive on the Fund’s financial performance in the first half of 2021, as the investment is expected to achieve during the next five years an average annual return of 10%. 

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