Circulars to Fund Unit Holders
Addendum announcement from Al Rajhi Capital regarding Al Rajhi Capital’s announcement about a material development related to Al Rajhi REIT Fund.
Date of the previous announcement : 19-08-1441 Corresponding to 12-4-2020
Previous announcement link: Click here
n addition to Al Rajhi Capital's announcement published on 12-04-2020, 19-08-1441 H. Al Rajhi Capital would like to clarify, as mentioned on the previous announcement that it has received several requests from real estate tenants to either reduce, reschedule or suspend due rents during the COVID-19 precautionary measures period. The 24-hour curfew directive in the Kingdom, in addition to some other related decisions, have impacted the business of its tenants in retail and commercial properties.
To date, the total value of potential discounts requested is SAR 9.0 Mn i.e. 5.5% of total rent. Primary assessment of the Fund Manager is as follows:
Since the situation is still evolving, there is a possibility of further revisions in above stated numbers. The Fund Manager shall submit its evaluations to Fund Board once the COVID-19 precautionary measures are over. Fund Manager expects the business to be negatively affected in short term by the continued economic fluctuations in global and local markets. On other hand, recent drop in SAIBOR has resulted in reducing the cost of loan servicing and should contribute positively to the fund financial performance.
The Fund Manager is monitoring the situation closely and will announce any material developments related to this matter in due course of time.