Mulkia REIT hires Retail Real Estate to manage Dammam's West Avenue Mall

Logo of Mulkia Gulf Real Estate REIT

Mulkia Gulf Real Estate REIT hired Retail Real Estate Co. as the property manager of West Avenue Mall, owned by the former and located in Dammam, to manage the rental, maintenance and supervision of the property, fund manager Mulkia Investment Co. said in a Tadawul statement today, Jan. 8.

Under the property management contract, annual fees incurred are valued at SAR 750,000. This is represented in administrative expenses for hiring and bearing the costs of the associated key personnel, in addition to 4% collection fees, deducted from the actual collected rent amount, said the company.

It added that 5% of the value of new leases shall be paid only once for new leases, with no collection fees incurred during the first year of the contract term. In case a lease is extended for three years or more at a 10% increase in value, a one-time 5% renewal fee shall also be payable.

The fund will bear the operating and maintenance expenses of the property.

The contract will be effective as of Feb. 1, Mulkia Investment stated, noting that there is no major impact expected on the fund’s operations as a result of the deal.