NCB Capital Company, the fund manager of AlAhli REIT Fund 1, said it received requests from properties lessees in AlAndalus Mall for rent reduction following the temporary closure of the mall in line with the Kingdom's efforts to control the spread of COVID-19.
The mall’s revenues account for 82.6% of the total income of the AlAhli REIT Fund I according to the financial statements for 2019.
The rent reduction requests are being evaluated on a case-to-case basis, the fund manager said in a bourse filing.
There will be a temporary negative impact on the performance of the fund for the fiscal year 2020; however, it is working to reduce the operating expenses related to the mall.
NCB Capital said it is presently difficult to assess the financial impact of the government’s precautionary measures.
AlAndalus Mall in Jeddah was temporarily closed on March 16, 2020.
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