Riyadh – Mubasher: Jabal Omar Development signed on Thursday a memorandum of understanding (MoU) with Alinma Investment to establish an income-generating real estate fund.

The agreement will be valid for five months starting from today, according to a bourse filing.

The fund will acquire income-generating operating assets, which are located in the first phase of Jabal Omar's Makkah development project.

Moreover, Alinma will do the required due diligence and obtain the necessary approvals from the Capital Market Authority (CMA) to finalize the deal.

In case the deal was finalised, Alinma will re-lease the assets to Jabal Omar, which will retain its right to re-purchase them after five years from the ten-year fund.

The positive impact of the agreement is expected to appear in the second quarter of 1438 Hijri, the statement said.