Al Aziziah REIT targets SAR 52M Riyadh property acquisition

Logo of Al Aziziah REIT Fund

Wasatah Capital, the fund manager of Al Aziziah REIT Fund, announced that the fund’s board of directors approved increasing the fund’s total asset value through the acquisition of developed, income-generating commercial usufruct rights in Riyadh, in line with the fund’s investment strategy.

In a statement on Tadawul, the company said the fund plans to acquire usufruct rights to two developed, income-generating commercial properties for a total value of SAR 52 million, excluding VAT and other expenses. The properties are located in Riyadh’s commercial sector.

The company said the transaction is subject to obtaining the approvals of Saudi Exchange (Tadawul), the Capital Market Authority (CMA), and unitholders, as well as meeting any other relevant regulatory requirements.

The acquisition will be financed through the issuance of new units to increase the fund’s total asset value, in accordance with the fund’s terms and conditions and subject to obtaining the required regulatory approvals.

The company said the potential acquisition is part of the fund’s strategy to maximize value for unitholders by acquiring usufruct rights to high-quality real estate assets.

If completed, the transaction is expected to have a positive impact on the fund’s overall performance and results.

The company noted that the fund manager’s procedures will include, but are not limited to, signing the usufruct rights purchase agreement, conducting due diligence, and obtaining the approvals of Tadawul and the CMA.

The fund manager will also seek unitholders’ approval in accordance with regulatory requirements.

The company said the acquisition of the commercial usufruct rights is classified as a related-party transaction due to a direct interest held by Saud Al-Rashoudi, a non-independent member of the fund’s board of directors.

Al-Rashoudi holds a 35% stake in the company selling the usufruct rights to the fund.

The company confirmed that the fund manager will disclose any material developments related to the matter in due course.