AlRajhi Capital announces the occurrence of a material development related to AlRajhi REIT Fund
AlRajhi Capital, the fund manager of AlRajhi REIT, has received a letter via email from Fouzan Trading and General Contracting Company, the master lessee of Narjees Plaza, Anwar Plaza and Rama Plaza, stating that it is proceeding to court for either rent free period or reducing the rent due to extra-ordinary circumstances that are beyond their control due to which they are unable to fully benefit from the intentions of the lease agreements.
Currently Narjees Plaza, Anwar Plaza and Rama Plaza all assets located in Riyadh are leased to Fouzan Trading and General Contracting Company on triple net basis at combined annual rent of 14.04 Mn per hijri year (approx.. 14.47 Mn per Gregorian year). These 3 assets together contribute 8.7% of total revenue of the fund.
The Fund Manager is ascertaining the validity of this letter and will take all possible actions to protect the interest of unit holders.
As the situation is still evolving, and the outcome of this matter shall be subject to court’s decision. The financial impact on fund’s dividend can’t be fully ascertained at this time.
The Fund Manager shall immediately update the unitholders of any material development arising in this matter