Musharaka REIT signs 7-year, SAR 1 bln credit facility agreement with Bank AlJazira

Logo of Musharaka REIT Fund

Musharaka Capital, the fund manager of Musharaka REIT Fund, signed a seven-year Shariah-compliant credit facility agreement of a maximum amount of SAR 1 billion with Bank AlJazira, according to a statement to Tadawul.

The credit facilities will be paid off by the end of the seventh year. Part of the fund’s real estate assets, in addition to a promissory note, will serve as a credit warranty, the fund manager added.

Through this credit facility, Musharaka REIT seeks to enhance its investment goals, in line with the fund's strategy within the risk mitigation framework. Musharaka Capital expects a global positive impact on the fund’s performance and financial results, driven by the diversified financing sources, the lower debt coverage ratio and minimum interest coverage ratio, as well as the increased upper limit of the financial leverage ratio.

All these factors will strengthen Musharaka REIT's position to achieve its strategy and objectives. This is besides supporting the acquisition of income-generating real estate assets that will benefit the fund and its unitholders, the statement indicated.