Jadwa REIT Saudi unitholders approve raising total asset value by SAR 370 mln via additional units

Logo of Jadwa REIT Saudi Fund

Unitholders of Jadwa REIT Saudi Fund approved increasing the fund’s total asset value by SAR 370 million during the meeting held on Sept. 2, fund manager Jadwa Investment Co. said in a bourse filing.

The planned increase will take place through offering additional units for the purpose of acquiring a real estate asset and paying the related expenses and costs.

Unitholders also approved the supplementary annex of the terms and conditions of the fund, which were fundamentally prepared to reflect the increase in the total asset value.

According to the data compiled by Argaam, Jadwa REIT Saudi Fund signed last March an agreement to purchase a property in The Riyadh Boulevard, for SAR 320 million.

The purchase will be financed via increasing the total value of the fund's assets, approved by the board of directors, to SAR 370 million, by SAR 120 million in an in-kind contribution from the new asset seller.

In addition, additional cash units worth SAR 250 million will be issued to finance the purchase of the new asset, its real estate transfer tax, the acquisition costs, in addition to enhancing the fund’s financial position.

The new asset is a retail and office complex, spanning 18,854 square metres (sqm), with a built-up-area of 36,340 sqm, located on Prince Turki bin Abdulaziz Road in the Hittin district north of Riyadh.