Jadwa Investment Company Announces Signing New Lease Contract to Jadwa REIT Saudi Fund
|Announcement Detail||Reference to Jadwa Investment announcement published on 13/03/1441H corresponding to 10/11/2019G regarding the acquisition of the hotel property “Aber Al Yasmin”. |
Jadwa Investment Company announces signing a new lease contract for the retail component under the hotel property “Aber Al Yasmin”. As a result, the property now is fully leased according to the below details.
Lease contract value and term:
The retail component is leased for 10 years term. The annual lease value is SAR 849,150 for the first five years. Then, it will increase by 10% to SAR 934,065 for the last five years.
The contract starts in 01/01/2021G and ends in 31/12/2030G.
Therefore, the property occupancy rate is 100% occupied by two tenants who operates in the hospitality sector and the pharmacy sector. The total annual leases are SAR 3,049,150 that are subject for escalations as previously announced. As a result, the total property initial yield stands at 9.11%.
It is expected that the result of the contract will be positive on the REIT’s financial performance within the first quarter of 2021.
The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.