Jadwa REIT Saudi Fund signed, on March 3, 2021, an agreement to purchase Boulevard Riyadh for SAR 320 million, fund manager Jadwa Investment said in a bourse filing.
The new asset is a retail and office complex, spanning 18,854 square metres (sqm), with a built-up-area of 36,340 sqm.
The purchase will be financed via increasing the total value of the fund's assets, approved by the board of directors, to SAR 370 million, by SAR 120 million in an in-kind contribution from the new asset seller.
In addition, additional cash units worth SAR 250 million will be issued to finance the purchase of the new asset, its real estate transfer tax, the acquisition costs, in addition to enhancing the fund’s financial position.
The new asset is leased to multi-tenants at an occupancy rate of 97%, with net operating income of approximately SAR 29.3 million.
The deal is subject to finalizing the required technical and legal due diligence and other regulatory approvals within 180 days from the agreement date.
No related parties are involved in the deal, and updates will be duly revealed, the statement added.
The relevant financial impact is expected to be positive and will appear on H1 2021 financials if the transaction is completed.
The board of directors of Jadwa REIT Saudi agreed on March 3, 2021, to increase the fund’s total assets by SAR 370 million to acquire a real estate asset in Riyadh.
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