Jadwa REIT Saudi Fund signs SPA for commercial part of Al Fanar complex

Logo og Jadwa REIT Saudi Fund

Jadwa REIT Saudi Fund signed today, July 28, a sale and purchase agreement (SPA) for the commercial component of Al Fanar complex in Al Rawabi district, Khobar, fund manager Jadwa Investment Co. said in a bourse statement.

The signing came after the fund’s board approved the property sale plan.

The sale price is SAR 140 million, the statement said, adding that the fund acquired the property in February 2018 and recorded an annual net rent yield of 8.25% over this period.

The sale will provide more flexibility for the fund and its financial position. The proceeds may be used for several options, including acquiring more accretive income-generating real estate assets, or partially paying off the existing bank facilities, which will alleviate the financial liabilities of the fund.

The agreement is subject to completing the required due diligence by the buyer.

There are no related parties involved in the transaction, the statement said.

The deal will likely reflect positively on the fund’s H2 2022 financials.