Announcements
Jadwa Investment Announces a Material Development to Jadwa REIT Al Haramain Fund
Thu, 20 August 2020
Description of the event:
Jadwa Investments announces that it has received a notice to terminate the rental lease contract of Tharawat Al Taqwa hotel – one of Jadwa REIT Al Haramain Fund properties.
The fund manager has received a notification on 12/28/1441 AH corresponding to 18/082020 G from Tharwat Al-Mashaer Real Estate Development and Investment Company in its capacity as the tenant of Tharawat Al-Taqwa Hotel owned by the Jadwa REIT Al-Haramain Fund to terminate the lease contract in accordance with the lease contract terms and conditions. The lease contract stated that the lessee has the right to terminate the contract after a period of four Hijri years from the date of the beginning of the lease term "1 Jumada Al-Awwal 1439 AH" (the mandatory lease period) by notifying the lessor in writing of the termination request in a period of less than 12 Hijri months prior to the date of termination. Therefore, the end the contract period will be on 01/05/1443 AH, equivalent to sixteen months from the date of notification.
Accordingly, the fund manager will identify the offers to operate and lease the Tharawat Al-Taqwa Hotel according to the performance of the hospitality sector in Makkah during the notification period.
The Impact Caused by the Event:
The end of the current lease contract for the Tharwat Al-Taqwa Hotel will be on 01/05/1443 AH. The fund manager is currently unable to accurately determine the impact, which mainly depends on the future performance of the hospitality market in Makkah. Therefore, the impact caused by the event could be positive or negative depending on the future offers. Thus, the fund manager will announce any future material developments regarding future operating and lease contracts.