Announcements
Jadwa Investment Company Announces a Material Development to Jadwa REIT Saudi Fund
Sun, 30 June 2024
Jadwa Investment Company (“Fund Manager”), in its capacity as the manager of Jadwa REIT Saudi Fund (the “Fund”), announces the signing of sale and purchase agreement for Al Yaum Tower (the “property”) located on King Fahad Road in Dammam on 24/12/1445H corresponding 30/06/2024G, after obtaining the approval of the fund board on the property sale plan.
The sale price is SAR 190,000,000 (excluding Real Estate Transaction Tax). It is worth noting that the fund had acquired the property in February 2018 and enjoyed a total rent income of SAR 124,800,000, resulting in an average yield of 7.57% over this period.
This sale process provides more flexibility for the fund and its financial position, as it is possible to use the proceeds of the sale for many options, for example, but not limited to:
- Acquire more accretive income-generating real estate assets;
- Partially pay-off the existing bank facilities, which will alleviate the financial liabilities of the Fund.
We would like to confirm that there is no related party involved in this sale process.,
The transaction is expected to have a positive long-term impact on the Fund's performance.