Media

Description of the Event:

Jadwa Investment announces that it has received a notice to suspend the lease contract for Tharawat Al Andalusia Hotel - one of Jadwa REIT Al Haramain Fund properties - due to a force majeure, which is the temporary suspension of Umrah due the Corona virus outbreak, may Allah protect us all. We would like to notify that the suspension period is temporary until the issuance of an order to lift the suspension by the authorities.

The fund manager has also received another notice for the same property, Tharawat Al Andalusia Hotel. The tenant has notified on 14/07/1441 AH corresponding to 09/03/2020 that the lease contract shall be terminated due to changing conditions in the hospitality sector in Makkah Al-Mukarramah. Thus, the end of the contract term will be on 13/07/1442 AH, equivalent to a period of twelve months from the date of notice. Note that the mandatory lease term expires on 30/12/1441 AH. The fund manager will monitor the offers of operating and leasing the property during the notice period (twelve months) and will be announcing after taking the necessary approvals.

The Impact Caused by the Event:

It is expected that the temporary suspension of Umrah will have a negative impact on the fund's returns. As for the termination of the contract, its impact will depend on the performance of the hospitality sector in Makkah at the time of termination.