Mulkia Investment Co. invited unit holders of Mulkia Gulf Real Estate REIT to a general meeting on Feb. 4, 2020 to vote on increasing the fund’s capital from SAR 600 million to SAR 681.1 million by issuing new units to the seller of Elite Mall to complete the acquisition deal.
The acquisition will be finalized by increasing the fund size through issuing 8.11 million units at a nominal value of SAR 10, totaling SAR 81.09 million, the company said in a statement to Tadawul on Tuesday.
The mall owner will have an in-kind share of SAR 80.6 million at SAR 9.94 per unit, representing 40% of the property value.
The difference between the issuance and subscription value will be recorded as an issuing discount under the unit holders’ net asset value section in the balance sheet.
The remaining value of the acquisition price will be paid through financing facilities.
The Riyadh-based Elite Mall, which is valued at SAR 201.5 million, will be fully leased under one contract for 5 years for a net income of SAR 16 million annually, starting from the ownership transfer date.
Unit holders will also vote on the amended terms and conditions of the fund.
The meeting must be attended by a number of unit holders who collectively own at least 25% of the value of fund’s units.
All unit holders who are registered at Securities Depository Center (Edaa) by the end of the second trading day preceding the meeting will have the right to attend and vote, the statement also noted.
On Jan. 16, Mulkia Investment Co. announced the distribution of cash dividends to Mulkia Gulf Real Estate REIT Fund unit holders for the period starting Oct. 1, 2019 to Dec. 31, 2019, at SAR 0.17 per unit, or 1.70% initial price per unit.
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