Alinma Makkah Real Estate Fund’s board of directors approved to waive the due rent for Jabal Omar Development Co. for the period from March 10, 2020, to Nov. 1, 2020, the developer said in a bourse filing on Thursday.
Pursuant to the waiver decision, the developer will be exempted from the payment of rent that was due on May 9, 2020.
The rent paid in advance to the fund for the period from March 10 to May 8, 2020 will be re-allocated as a credit balance for Jabal Omar, which will be used in the payment of rent for future period, in line with the fund's contracts and agreements.
The decision will alleviate the negative impact from COVID-19 by reducing some of the financing burdens for 2020.
In May, the Tadawul-listed developer decided to suspend rental payment from May to November 2020, amounting to SAR 270 million, due to force majeure resulting from COVID-19 pandemic.
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