Friday, 29 March 2024

Musharaka Capital Completed Gardinio Hotel Acquistion

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Musharaka Capital’s company announced that it has completed the legal and regulatory procedures, concerning the acquisition of “Gardinio Hotel” which is located in Riyadh, Olaya district, Takhassusi Street.

The acquisition was made for SR 85,500,000 financed totally by Sharia-compliant credit facility and title-deed has been successfully transferred to Musharaka REIT.

Furthermore, the lease agreement has been transferred to the Fund as “landlord” with “Maskan Al Salam Co. for development and commercial investment” as “tenant”, for 10 years lease commencing on November 1st, 2021, for average annual revenue of SR 7,775,000, knowing that the first rent installment of SR 7,000,000 has already been received by the fund, in advance.

The lease agreement is irrevocable for the entire 10 years and the rent installments are guaranteed by promissory notes.

The fund manager emphasizes that the transaction would have positive impact on Musharaka REIT’s results.

It will help enhance the fund’s income and reduce any future volatility, in the revenue stream.

Also, the property’s long tenancy will help generating sustainable future cash flow for units holders.

 

 

 

 

 

 

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