Logo of Al-Ma'ather REIT Fund
Al-Ma'ather REIT Fund signed today, Oct. 13, a non-binding memorandum of understanding (MoU) to acquire the Burjeel Hospital building in Sharjah, the UAE, in a deal worth AED 100 million, which will be fully financed by the fund's existing banking facilities, the fund manager, Osool and Bakheet Investment Co., said in a bourse filing.
The MoU will expire on Dec. 4, 2021, provided that due diligence procedures are completed during this period and the regulatory procedures are finalized in preparation for the signing of a binding purchase agreement that will be announced at a later period.
The buildup area amounts to 16,758 square meters, spanning 6,033 square meters. The tenant of the property is VPS Healthcare LLC registered in Abu Dhabi, at an annual rental value of AED 8 million with an increase of AED 500,000 every five years over a rental period of 20 years.
This acquisition will be positively reflected on the funds unit holders and will boost the fund’s asset and geographical diversification. It will also achieve a net positive return as the unit holders will benefit from the differences between financing costs and rental income, the company added.
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