Riyadh – Mubasher: Jadwa REIT Saudi Fund has signed an agreement to purchase Boulevard Riyadh, a retail and offices complex, in a SAR 320 million deal, Jadwa Investment Company disclosed to the Saudi Stock Exchange (Tadawul).
Boulevard Riyadh has a total land size of 18,854.35 square meters and a built-up area of 36,340 square meters. It is leased to multi-tenants at a 97% occupancy rate with a net operating income of about SAR 29.3 million.
The deal will be financed by increasing the total value of the fund's assets, which has been approved by its Board of Directors to SAR 370 million.
This will be through an in-kind contribution from the seller of the new asset for an amount of SAR 120 million, in addition to the issuance of additional cash units in the fund for SAR 250 million, which will finance the purchase of the new asset, as well as its real estate transfer tax and acquisition costs.
This is also set to strengthen the financial position of the fund, the bourse filing revealed.
The deal is subject to completing the technical and legal due diligence, as well as obtaining regulatory approvals and the support of the fund’s unitholders.