Alwaha REIT to acquire residential building via new unit issue

Alwaha REIT Fund signed an acquisition agreement in addition to a five-year lease with the current owner of the “Al Jawhara Residential Building”, fund manager Wasatah Capital announced in a statement to Tadawul.

The agreement is conditional on completing the procedures to raise the total value of the fund’s assets by offering additional units.

The step requires the approval of the Capital Market Authority (CMA), the Saudi Exchange (Tadawul), and Alwaha REIT’s unitholders.

Wasatah Capital expected that this deal to have a positive impact on the fund.

According to data compiled by Argaam, Wasatah Capital said in June 2024 that Alwaha REIT's board approved to increase the total asset value through the acquisition of an income-generating residential building, owned by a related party, in Riyadh.

The fund looked to acquire the developed and income-generating Al Jawhara Residential Building for SAR 46 million, excluding the real estate transaction tax. After the acquisition, the property will be leased back to the seller for five years at an annual net rent of SAR 4 million and a net return of 8.7%.