Addendum announcement from Al Rajhi Capital regarding Al Rajhi Capital’s announcement about a material development related to Al Rajhi REIT Fund.
|Date of the Previous Announcement||2020-04-12 Corresponding to 1441-08-19|
|URL of the Previous Announcement||Click Here|
|Change Details||In addition to Al Rajhi Capital's announcement published on 12-04-2020, 19-08-1441 H. Al Rajhi Capital would like to clarify, as mentioned on the previous announcement that it has received several requests from real estate tenants to either reduce, reschedule or suspend due rents during the COVID-19 precautionary measures period. The 24-hour curfew directive in the Kingdom, in addition to some other related decisions, have impacted the business of its tenants in retail and commercial properties. |
To date, the total value of potential discounts requested is SAR 9.0 Mn i.e. 5.5% of total rent. Primary assessment of the Fund Manager is as follows:
• requests amounting to SAR 3.1 Mn (1.9 % of total rent) are directly impacted by current pandemic situation and government orders and can be potentially acceptable claims, so they are under further review.
• request amounting to SAR 5.9 Mn (3.6% of total rent) are not directly impacted and being evaluated on case by case basis and can be potentially rejected
Since the situation is still evolving, there is a possibility of further revisions in above stated numbers. The Fund Manager shall submit its evaluations to Fund Board once the COVID-19 precautionary measures are over.
|The Impact Caused by the Change||Fund Manager expects the business to be negatively affected in short term by the continued economic fluctuations in global and local markets. On other hand, recent drop in SAIBOR has resulted in reducing the cost of loan servicing and should contribute positively to the fund financial performance |
The Fund Manager is monitoring the situation closely and will announce any material developments related to this matter in due course of time.
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.