Investor Awareness
10/05/2023
Announcement by Al Rajhi Capital regarding a Material Development of Al Rajhi REIT Fund
Al Rajhi Capital, in its capacity as the Fund Manager of Al Rajhi REIT Fund , announces the signing of a new master-lease agreement for both assets, Blue Tower located in Yarmouk District AlKhobar, and Luluah Warehouses located in Masani District ,Riyadh, on 20/10/1444H corresponding to 10/05/2023G as follows:
The Event: The Fund has signed the agreement with Nofodh Real Estate Investment Co to lease both assets, Blue Tower located in Yarmouk District AlKhobar, and Luluah Warehouses located in Masani District, Riyadh, as following:
- Blue Tower: Rental income amounting (12,331,513) Saudi Riyals for each year excluding VAT with an escalation in the 3rd year of 7%. The agreement will be for five (5) years starting on 11/03/2023G and ending on 10/03/2028G
- Luluah Warehouses: Rental income amounting (9,375,262) Saudi Riyals for each year excluding VAT with an escalation in the 3rd year of 7%. The agreement will be for five (5) years starting on 06/03/2023G and ending on 05/03/2028G
The tenant is Nofodh Real Estate Investment Co, It should also be noted that the lessee is not a related party
The Impact Caused by the Event: 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 contractual escalation.