Mulkia Gulf REIT secures SAR 300 mln additional loan from Bank Albilad

Mulkia Gulf Real Estate REIT Fund signed an Islamic credit facility agreement with Bank Albilad to obtain an additional loan worth SAR 300 million, fund manager Mulkia Investment said in a bourse statement.

The five-year loan will be used to finance the fund’s expansion plan through acquiring income-generating assets inside Saudi Arabia.

The additional facility will be paid off in lump sum at the end of the agreement term. Only the financing cost will be repaid throughout the agreement term.

It was secured by a promissory note and asset pledge. Other guarantees will be provided, if the value of the offered securities becomes lower than the required limit.

Bank Albilad is a related party, being the fund’s custodian, Mulkia said.

The agreement is subject to the credit limits, set under the terms regulating REITs.

In December 2017, Mulkia Gulf REIT inked an agreement to get Sharia-compliant facilities worth SAR 300 million, Argaam reported.