Addendum Announcement from Al Rajhi Capital Regarding a material development related to Al Rajhi REIT Fund
Date of the previous announcement: 29-11-1441 H Corresponding to 20-07-2020 G
For more details about the previous announcement
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Further to the announcement of Al-Rajhi Capital published on 29-11-1441 H corresponding to 20-07-2020 G, The Fund Manager of Al Rajhi REIT would highlight that Rawaj Real Estate Company (the anchor tenant for both assets blue tower and luluwah warehouse) have follow the provisions of the lease agreement with respect to rent review process, by appointing three appraisers so that the rent will be the average of the three appraisers, the reviewed annual rent will be as follows:
- Luluwah warehouse amount of SAR 9,375,262
- Blue tower amount of SAR 12,331,513
The rent has been revised from the beginning of the third year of the lease agreement on 06/03/2020 until the end of the lease agreement.
The amended lease agreement was signed on 01/12/2021 G. which stipulated on rescheduling of the unpaid due amounts totaling SAR 24,508,882.09 for blue tower and a total of SAR 18,633,333.23 for luluwah warehouse to be scheduled on 6 payments, one payment upon signing the contract and five payments on a monthly basis.
The Impact Caused by the Event: Enhancement of cash available in the fund, a decrease in the total rent of the fund due to the decrease in the rents of Blue Tower and Luluah Warehouse by 3.91% and 2.78% respectively.
