Jadwa Investment Sells Property for SAR27 million in 12% ROC

Jadwa Investment, which acted as a fund manager for Jadwa REIT Saudi, announced that it would sell the property of Rawd Aljenan School located in Riyadh in the Palm neighborhood on July 4, 2022. Meanwhile, the resolution has been approved by the Fund’s Board of Directors, and they wish to obtain the investment returns, so the sales and purchase agreement has been drawn up with the concerned parties.

Jadwa Investment said in a statement to the Saudi Stock Exchange (Tadāwul) on Tuesday that the property was sold for 27 million riyals, resulting in a return of capital on the book value of 12%.

It should also be noted that the Fund acquired the property in January 2019 and obtained a net annual rental return of 10% during the whole period.

This sale provides a high elastic foundation for the Fund. It then strengthens its financial position, as it is possible to use sales proceeds for many options, including but not limited to:

Use proceeds to improve and raise the quality of the Fund’s current assets, thereby boosting its returns, acquire high-quality income-generating real estate assets, or partially pay for the existing bank facilities, contributing to reducing the Fund’s financial burdens.

Jadwa Investment noted in the statement that no related party was involved in the process.

The impact is expected to be positive on the Fund’s results, as the financial implications of the sale will be included in the company’s financial statements for the second half of 2022.