Jadwa Investment Company Announces occurrence of a Material Development on Jadwa REIT Saudi Fund
Sun, 12 June 2022
Description of the event:
Jadwa Investment Company (the “Fund Manager”), in its capacity as the manager of Jadwa REIT Saudi Fund (the “Fund”), announces that the Fund has increased its shariah-compliant banking facility limit provided by Banque Saudi Fransi, according to the following details:
The limits of the shariah-compliant banking facility, which was previously obtained from Banque Saudi Fransi, have been increased by one hundred and seventy million three hundred thousand Saudi riyals (SAR 170,300,000), bringing the total available banking facility to one billion and one hundred and seventy million and three hundred thousand Saudi riyals (SAR 1,170,300,000). The purpose of the increase in facility is to finance the Fund’s new acquisitions of income-generating properties located in the Kingdom while ensuring a diversified assets classes exposure that is in line with the Fund's investment strategy, which shall reflect positively on the fund's net income and cash dividends.
Withdrawals from the additional facility are made during the term of the original facility agreement. And the full amount of the withdrawn amounts shall be paid in one installment at the end of the facility period. During the term of the agreement, only the financing cost will be paid. The impact is expected to be positive on the fund, as the increase in the facility limits provides the fund with more flexibility to acquire high quality income-generating real estate assets in line with the fund's investment strategy.