Announcements
Jadwa Investment Company Announces The Occurrence Material Development to Jadwa REIT Saudi Fund
Wed, 15 February 2023
Description of the event:
Jadwa Investment Company, in its capacity as the manager of Jadwa REIT Saudi Fund (the “Fund”), announces the signing a new master-lease agreement for Marvella Residential Compound (the “Property”) located on King Abdullah road in Riyadh, on 23/07/1444H corresponding to 14/02/2023G (the “Agreement”) as follows:
The Fund has signed the agreement with National Building & Marketing Company (the “Tenant”) to lease the compound completely with a total annual rental value of fifty million (50,000,000) Saudi Riyals for each year excluding VAT.
The agreement will be for five (5) years starting on 13/03/2023G and ending on 13/03/2028G, as the total value of the contract is two hundred and fifty million (250,000,000) Saudi riyals.
The tenant is the National Company for Building and Marketing, a company listed in the parallel market (Nomu), as it was established as a limited liability company in 1999 in Riyadh with a capital of 500 thousand Saudi riyals, then it turned into a closed joint stock company in 2014, and the capital was increased several times reaching To 240 million Saudi riyals at the end of 2022.
It should also be noted that the lessee is not a related party.
The effect is considered positive as the signing of the new agreement ensures the continuity of 100% property occupancy at the same level of previous years' income with a robust tenant.