Musharaka Cap plans self-operation of properties with contracts ending in August

18/08/2022 Argaam

Logo of Musharaka REIT Fund


Musharaka REIT’s fund manager, Musharaka Capital, announced today, Aug. 18, the imminent completion of tenancy contracts of some of the fund's investment properties, according to a bourse filing.

Tenancy contracts for Ajzala Residential Complex, Pearl Residential Complex and Radisson Blu Hotel Apartments expire on Aug. 22, 2022, while that of Sea Shore Residential Complex expires on Aug. 31, 2022, the company stated.

Musharaka Capital will manage these properties through operators specialized in real estate operations and facility management. Occupancy rates currently stand at 82% for Ajzala Residential Complex, 74% for Seashore Residential Complex and 71% for Pearl Residential Complex.

Variation in revenues from these properties is foreseen because of the change in revenues from fixed to variable, with the fund bearing the operating expenses of these properties.

The fund manager expects to increase occupancy rates when starting self-operation due to increased operational efficiency and improved demand for residential complexes.

Musharaka Capital will work towards maintaining the distribution of cash dividends to its unitholders, in accordance with the fund's dividend distribution policy in its terms and conditions.


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