Jadwa Investment Company has signed an agreement to buy and sell the property of the Riyadh Boulevard complex, in its capacity as the manager of the Jadwa REIT Saudi Fund.
According to Arabiya Net, the company said in a statement that the property is located in the city of Riyadh on Prince Turki bin Abdulaziz Al-Awal Road in the Hittin neighborhood in the north of the city of Riyadh under the commercial name Riyadh Boulevard Complex, which is an office and commercial complex built on a land of (18,854.35) square meters. And building areas of (36,340) square meters.
The purchase value amounts to 320 million riyals ($ 85.3 million). The purchase will be financed by increasing the total value of the fund’s assets that have been approved by the fund’s board of directors, which amount to 370 million riyals, by accepting an in-kind contribution from the seller of the new real estate asset. An amount of 120 million Saudi riyals in addition to the issuance of additional cash units in the fund with a value of 250 million riyals.
The purchase of the property, its real estate disposal tax and the acquisition costs will be financed, in addition to strengthening the financial position of the fund.
The company indicated that the property is leased by 97% to several tenants, with a net operating income of approximately 29.3 million riyals.
She explained that the financial impact of this deal is expected to be positive in general, which will be reflected in the results of the fund during the first half of 2021, if this deal is completed.
