Jadwa REIT sells residential part of Al Fanar compound in Al-Khobar for SAR 90 mln

Jadwa Investment Company (“Fund Manager”), in its capacity as the manager of the Jadwa REIT Saudi Fund (the “Fund”), announced on Thursday the signing of the sale and purchase agreement for Al Fanar Residential compound only (the “property”) located in Al Rawabi district in Khobar on 23/08/2023, after obtaining the approval of the fund board on the property sale plan.

The Company explained that the sale price is (SAR 90,000,000). It is also worth noting that the fund acquired the property in February of 2018 and enjoyed an annual net rent yield of 8.25% over this period.

This sale process provides more flexibility for the fund and its financial position, as it is possible to use the proceeds of the sale for many options, for example, but not limited to using them to acquire more accretive income-generating real estate assets or using the proceeds to partially pay-off the existing bank facilities which will alleviate the financial liabilities of the Fund.

The Company would like to confirm that there is no related party involved in this sale process; it is expected that the result of this transaction will be positive on the Fund’s financial performance in the second half of 2023.