Derayah Financial Company Announces a Material Development to Derayah REIT Fund regarding developments to the announcement published on June 11, 2025
| Element List | Explanation |
|---|---|
| Introduction | Derayah Financial Company (“Fund Manager”), in its capacity as Manager of Derayah REIT Fund (“Fund”), announces the issuance of a final court ruling for the Fund regarding the lease contract concluded with Al Thamra Al Hadetha Company for the Smart Tower property in Riyadh. |
| Description of the Event | Derayah Financial, as manager of Derayah REIT Fund, announces that it has received notification from the fund's attorney, Naif Mohammed Al Salem Lawyers and Consultants, stating the following:
• A final court ruling has been issued by the Fifteenth Legal Circuit of the Court of Appeal in the Riyadh region, in favor of the Fund, by upholding the ruling issued by the circuit specialized in hearing major lawsuits at the General Court in Riyadh, which ruled to terminate the electronic lease contract concluded with Al-Thamra Al-Hadithah Company for the Smart Tower property - in the city of Riyadh, due to the proven failure to pay the rent.
It is noteworthy that the fund manager is concurrently working on several legal actions to retrieve the overdue rent. |
| The Impact Caused by the Event | The impact will be reflected in the transfer of all subcontracts for existing tenants from the previous tenant directly to the Fund, and consequently in the rentals collected due to the previous tenant's default in paying rents. This will enhance the property's management capacity and increase the Fund's cash flow. |
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