Al Maather REIT says court orders Al-Rabie GENX tenant to pay SAR 4.25 mln in rent arrears

Logo of Al Maather REIT Fund

Osool & Bakheet Investment Co., the fund manager of Al Maather REIT Fund, announced today, March 14, 2021, the latest updates related to the case pending against Gulf ELCON Company for Trading and Contracting in General Court in Riyadh.

The judicial department issued a trial judgment obligating the tenant to pay SAR 4.25 million from the remaining rent on the defendant for a period of one year and nine months, following which the tenant appealed the trial judgment, the firm said in a statement to Tadawul.

The case was referred to the Court of Appeal in Riyadh to review and contemplate the trial vision of the judicial department’s decision, based on the observations given by the Court of Appeal directed to judicial department.

The judge decided on Tuesday, March 9, 2021, that nothing appeared to impact the previous trial judgment and, therefore, the judge retransmitted the case to the Court of Appeal to proceed on it without any change on the previous trial.

The company said the trial is still pending the final judgment; therefore, the resulting impact will be determined and the fund manager will announce any updates regarding this trial.

In August 2020, Osool & Bakheet Investment received a letter from Gulf ELCON Company for Trading and Contracting, the anchor tenant of Al-Rabie GENX assets, seeking to hand back the leased units with a rental value of SAR 3.75 million, Argaam reported.

In September, the fund manager said it was handed back Al-Rabie GENX asset, one of Al Maather REIT Fund’s properties, from Gulf ELCON Company for Trading and Contracting.