Media

Jadwa Investment announces the acquisition of an educational property in Riyadh by Jadwa REIT Saudi Fund on 18/05/1440H equivalent to 24/01/2019. Details are as follows:

• An educational property located along Prince Abdulaziz Bin Thunayan Street, Nakheel District, Riyadh Saudi Arabia with land size of 3,000 sq m and built up area of 9,700.

• The property acquired at a total value of )25,650,000) twenty five million and six hundred and fifty thousand Saudi Riyals, which will be financed through the existing Shariah-compliant credit-line facility obtained from Banque Saudi Fransi.

• The property is leased to Rawd AlJinan Private School for (2,500,000) two million and five hundred thousand Saudi Riyals per Hijri year. The acquisition carries an initial acquisition yield of 9.8% (equivalent to 10.0% on Gregorian year).

• The property is leased on 01/09/1439H equivalent to 17/05/2018 for 10 years lease term, with a break, which can be exercised by the tenant upon the completion of year 5 of the initial term, subject to 3 month notice.

• The property has been valued by two licensed independent valuers from the Saudi valuers authority for an average price of (31,125,000) thirty one million and one hundred and twenty five thousand Saudi Riyals and has received the fund board and sharia approval on the acquired property.

It is expected that the result of the acquisition will be positive on the REIT’s financial performance within the first quarter of 2019.
We confirm that there are no related parties in the acquisition.