Announcements
Jadwa Investment Announces the Occurrence of Specific Event to Jadwa REIT Saudi Fund
Thu, 04 March 2021
Description of the event:
Jadwa Investment Company (“Fund Manager”), in its capacity as the manager of Jadwa REIT Saudi Fund (the “Fund”), announces that the Fund has signed a Sale and Purchase Agreement for Boulevard Riyadh asset (the “Agreement”) on 19/07/1442H corresponding to 03/03/2021G, according to the following details:
1- The property is located in Riyadh on Prince Turki bin Abdulaziz Al Awwal Road in Hittin district in the north region of Riyadh and Known as "Riyadh Boulevard" (the “New Asset”).
2- The New Asset is a retail and offices complex with a total land size of (18,854.35) sqm and a built-up-area of (36,340) sqm.
3- The purchase price is SAR 320 million. The purchase will be financed by increasing the total value of the Fund's assets which has been approved by the Fund’s Board of Directors, and amounts to SAR 370 million, by accepting an in-kind contribution from the seller of the New Asset for an amount of SAR 120 million in addition to the issuance of additional cash units in the Fund for the amount of SAR 250 million, which will finance the purchase of the New Asset, its real estate transfer tax and acquisition costs, in addition to strengthening the financial position of the Fund.
4- The New Asset is leased to multi-tenants at 97% occupancy rate with a net operating income of approximately SAR 29.3 million.
5- The Agreement is subject to completing the required technical and legal due diligence in addition to obtaining the necessary approval of the Capital Market Authority and the Saudi Stock Exchange Company "Tadawul” as well as the approval of the Fund's unitholders within (180) days from the date of the Agreement, the parties may agree to extend it for an additional period in writing.
We would like to confirm that there are no related parties in this transaction and that the Fund Manager will disclose any developments in this regard.
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 in the event that this transaction is completed