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Description

Introduction

Al Wasatah Al Maliah (Wasatah Capital) in its capacity as the Fund manager of AlWaha  REIT Fund announces the approval of the Fund's Board of Directors to increase the fund’s total asset size by acquiring a developed and income generating residential building “AlJawhara Residential Building” owned by - a related party – located in Alnakheel district in Riyadh city, and the procedures require obtaining the approval of the Capital Market Authority, the Saudi Exchange (Tadawul) and the unitholders, and any other regulatory requirements.

Description of the event

Acquisition a developed and income generating residential building “AlJawhara Residential Building” with a total value of Saudi riyals 46,000,000   excluding RETT. After acquisition, the property will be leased back to the seller with a five-year committing lease agreement for an annual net rental income of 4,000,000 Saudi riyals, a net yield of 8.7 %.

This acquisition with be funded through issuing in-kind units to the seller of the property as well as issuing cash units to the public to increase the fund’s total assets size as per fund’s Terms and Conditions.

The resulted impact from the occurrence of the event

Completion of the process of increasing the total fund’s size by obtaining the approvals of Capital Market Authority, Saudi Exchange (Tadawul) and Unitholders by offering additional units.

Other information

The real estate property is owned by Shomou Commercial Investment Company Limited, which is a related party to the fund being a major unitholder, and the property manager for some of the fund's real estate properties, according to what was disclosed in the terms and conditions of the fund.

 

The fund manager will complete the required transactions to increase the fund’s total asset size.