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ALINMA RETAIL REIT

19 November, 2024 08:06

Alinma Investment Company Announces the Occurrence of Specific Event to Alinma Retail REIT Fund

Element ListExplanation
Introduction Alinma Investment Company, in its capacity as Fund Manager of Alinma Retail REIT Fund, announces the signing of an agreement to purchase an office property in Riyadh on 15/05/1446 AH corresponding to 17/11/2024 AD
Description of the Event Alinma Investment Company, in its capacity as Fund Manager of Alinma Retail REIT Fund, announces the signing of an agreement to purchase an office property in Riyadh on 15/05/1446 AH corresponding to 17/11/2024 AD (the “Agreement”), and the details of the property are as follows: • The property located in AlQirawan district, in Riyadh city, Saudi Arabia. It is an office complex built on a land area of (14,880) square meters, with a built-up area exceeding 65 Thousand square meters. • The property purchased price is SAR 380 million (Excluding real estate transaction tax), and the deal is doesn’t include brokerage fees. • The property is leased to a mix of tenants (government agencies, semi-government, international companies, private companies), and the net income of the property is expected to reach 34 million Saudi riyals (8.95% of the property price). • The property is strategically located, and the development has been completed recently. • The agreement is conditional on completing a due diligence examination for the property, the purchased to be financed through credit facilities from alinma bank. • Due to the guaranteed grace period for some tenants, it was agreed with the seller to postpone payment of part of the price until the grace period ends and the rent for the entire property is due. • As mentioned in the terms and conditions the fund manager receives 1% of the purchase price of each real estate asset in exchange for the fund manager conducting the necessary investigation and negotiation, in order for to achieve a positive impact over the fund and unitholders, Alinma Investment Company has waived the Transaction fees related to this property.
The Impact Caused by the Event The financial impact of the deal is expected to be generally positive, which is expected to be reflected in the Fund’s results starting next year.

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