Announcements
Jadwa Investment Announces Signing New Lease Contract to Jadwa REIT Saudi Fund
Sun, 05 July 2020
Description of the event:a
Reference to Jadwa Investment announcement published on 13/03/1441H corresponding to 10/11/2019G regarding the acquisition of the hotel property "Aber Al Yasmin".
Jadwa Investment Company announces signing a new lease contract for the retail component under the hotel property "Aber Al Yasmin". As a result, the property now is fully leased according to the below details.
Lease contract value and term:
The retail component is leased for 10 years term. The annual lease value is SAR 849,150 for the first five years. Then, it will increase by 10% to SAR 934,065 for the last five years.
The contract starts in 01/01/2021G and ends in 31/12/2030G.
Therefore, the property occupancy rate is 100% occupied by two tenants who operates in the hospitality sector and the pharmacy sector. The total annual leases are SAR 3,049,150 that are subject for escalations as previously announced. As a result, the total property initial yield stands at 9.11%.
It is expected that the result of the contract will be positive on the REIT’s financial performance within the first quarter of 2021.