Al Rajhi Capital announces the occurrence of a material development related to Al Rajhi REIT Fund.
|Description of the Event||Al Rajhi Capital, the Fund Manager of Al Rajhi REIT has received an email stating notice of termination for lease contract of Blue Tower Building, AlKhobar and Luluah Warehouse, Riyadh under force majeure clause sighting COVID-19 pandemic situation in the Kingdom. |
Currently Blue Tower Building, AlKhobar and Luluah warehouse, Riyadh are leased on triple net basis to Rawaj Real Estate Company at an annual rent of SAR 18.3 Mn and SAR 13.6 Mn respectively. Both these assets together contribute SAR 31.9 Mn i.e. 19.4% of total revenue of the fund.
|The Impact Caused by the Event||The Fund Manager is ascertaining the validity of this email notice and believes that the lessee does not have right to terminate these leases. The Fund Manager will take all possible actions including legal action to protect the interest of unit holders. |
As the situation is still evolving, the financial impact on fund’s dividend can’t be ascertained at this time. The Fund Manager shall periodically update the unitholders of any material development arising in 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.