Jadwa Investment Company Announces occurrence of a specific event to Jadwa REIT Saudi Fund
Thu, 21 April 2022
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 a leased land in Jeddah (the “Agreement”) on 19/09/1443H corresponding to 20/04/2022G, according to the following details:
1) The property is located in Jeddah on Prince Sultan bin Abdulaziz Road in Al Zahra district.
2) The new Asset is a commercial land with a total size of (161,276) sqm.
3) The acquisition price is SAR 500 million (excluding RETT and acquisition fees) and the acquisition will be financed through the Shariah-compliant bank facility available to the Fund.
4) The new asset is fully leased to Arabian centers company with a long-term lease contract of 30 years term, out of which 15 years are binding and the start of the lease contract is 03/01/1444H corresponding to 01/08/2022G, The rent amount for the first ten years is SAR 30 million, and then increases from year 11 to year 20 to SAR 35 million, and finally, the rent amount in the last ten years rises to SAR 42.5 million, which results in an average acquisition yield of 7.18%.
5) The Agreement is subject to completing the required technical and legal due diligence, and the agreement has a term of (60) days to complete the acquisition.
It is expected that the result of this transaction will be positive on the Fund’s financial performance in the second half of 2022 in the event that this transaction is completed.