Jadwa REIT Saudi inks SAR 90 mln SPA for Al Khobar property

Jadwa REIT Saudi Fund signed on Aug. 23 a sale and purchase agreement (SPA) for Al Fanar Residential Compound, located in Al Rawabi district, Al Khobar, fund manager Jadwa Investment Co. said in a statement to Tadawul.

The move followed approval from the fund’s board on the property sale plan.

The sale price was determined at SAR 90 million, the statement said, noting that the fund acquired the property in February 2018 and obtained an annual net rent yield of 8.25% over this period.

This sale process provides more flexibility for the fund and its financial position, as the proceeds might be used for many options, including acquiring more accretive income-generating real estate assets or to partially pay the existing bank facilities, which will alleviate the financial liabilities of the fund, the statement added.

The fund manager confirmed that there is no related party involved in the sale process and expected a positive impact on the fund’s financial performance in the second half of 2023.

Source : Arqaam