Announcement by Jadwa Investment Company a material development of Jadwa REIT Saudi Fund (Sale of Raud Al Jenan School)
| Element List | Explanation |
|---|---|
| Introduction | Jadwa Investment Company (“Fund Manager”), in its capacity as the manager of the Jadwa REIT Saudi Fund (the “Fund”), announces the sale of Raud Al Jenan School property (the “property”) located Al Nakheel district in Riyadh in 05/12/1443H corresponding 04/07/2022G, after obtaining the approval of the fund board on the property sale plan, and signing the sale and purchase agreement with the relevant parties. |
| Description of the Event | The property was sold at a price of (SAR 27,000,000), which resulted in a 12% capital gain on the book value of the property. It is also worth noting that the fund had acquired the property in January of 2019 and enjoyed an annual net rent yield of 10% over this period.
This sale process provides more flexibility for the fund and its financial position, as it is possible to use the proceeds of the sale for many options, for example, but not limited to: using them to enhance and raise the quality of the current assets of the fund which will result in increasing their returns, or using them to acquire more accretive income-generating real estate assets, or using the proceeds to partially pay-off the existing bank facilities which will alleviate the financial liabilities of the Fund.
We would like to confirm that there is no related party involved in this sale process. |
| The Impact Caused by the Event | It is expected that the impact will be positive on the fund as the financial impact of the sale will be included in the company's financial statements for the second half of this year 2022. |
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