Logo of Alwaha REIT Fund
Alwaha REIT Fund said the board approved to increase the total asset value through the acquisition of an income-generating residential building, owned by a related party, in Riyadh, fund manager, Wasatah Capital, said in a statement to Tadawul.
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The fund seeks to acquire the developed and income-generating Al Jawhara Residential Building for SAR 46 million excluding the real estate transaction tax. After acquisition, the property will be leased back to the seller for a five-year period at an annual net rent of SAR 4 million and a net return of 8.7%.
The acquisition will be made via issuing new units to increase the total asset value, aligning with the related terms, as well as provisions. It also requires the approvals of the Capital Market Authority (CMA), the Saudi Exchange (Tadawul) and unitholders.
The fund will issue in-kind units to the property seller and the public upon finalizing the related approvals.
The real estate property is owned by Shomou Commercial Investment Co., a related party, which is a major unitholder and a property manager.
The fund manager will complete the required measures to finalize increasing the total asset value.
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