Musharaka REIT announces increase in Al Rajhi Bank’s credit facility to SAR 1 bln

Musharaka Capital, fund manager of Musharaka REIT Fund, announced the increase in banking facilities provided by Al Rajhi bank, in May 2018, to SAR 1 billion from SAR 400 million.

The fund manager said in a bourse statement that the step is part of its efforts to improve the fund’s efficiency and its readiness to take advantage of attractive opportunities in the local, regional and international real estate markets.

It added that the fund benefitted from the current lower interest rates.

It was also agreed with Al Rajhi Bank to review the facility margin, the fund manager said, adding that the change will apply from the next rollover in June 2020.

On May 31, 2018, Musharaka REIT signed an agreement with Al Rajhi Bank to obtain facilities worth SAR 400 million, with a six-month SAIBOR rate plus 1.85 percent, Argaam reported.

The loan, which is guaranteed by a promissory note and a pledge on properties, will remain valid for 7 years, with financing costs only to be paid throughout that period.