| Description of the Event |
Mulkia Investment Company, in its capacity as the fund manager of Mulkia Gulf Real Estate REIT Fund, announces starting a legal action process against the tenant of Jeddah Dinar Commercial Building, M/S. Saba Real Estate Company Ltd. requesting them to pay the rental dues owed in favor of the fund, where several friendly measures have been taken to solve the issue & to reach a friendly solution, but we couldn’t reach a solution with the tenant, as a result the fund manager has started arbitration procedures based on the lease agreement signed with the tenant, and a licensed law firm was assigned to follow up the matter with the arbitration committee, the competent court and the relevant authorities. It should also be noted that the lease agreement signed with Saba Real Estate Co. is a binding contract for a period of seven years that ends in October 18, 2024, with an amount of 9,957,640 SAR and the due amount not paid exceeds one year till date of the announcement and based on which the tenant will be requested to pay all the rents when they are due based on the signed lease contract. |
| The Impact Caused by the Event |
The impact of this event will be determined upon the arbitration committee decision, but currently, the financial impact couldn’t be detected on the fund's activities, and a provision will be considered in the fund's financial statements as per the related regulations. The fund manager will announce any updates in this regard. |
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