Logo of Mulkia Investment Co.
Mulkia Investment Co. signed on Feb. 21 a memorandum of understanding (MoU) to establish a real estate fund in order to acquire a plot of raw land in Buraiydah, spanning 2.6 million square meters.
In a statement to Tadawul, the company said the transfer ownership and payment for the land plot will be after completing the procedures of the bank financing the fund and obtaining a no-objection from the Capital Market Authority (CMA) on establishing the private real estate fund.
The MoU is for 90 days, the statement said, adding that both parties can extend this period with a written consent. The MoU will not take effect except after ensuring that the authority does not object and the fund is established.
If the company is unable to obtain a no-objection from the CMA, the MoU ceases to exist and there is no obligation on the two parties, the statement added.
Incase Mulkia obtains CMA’s approval and launches the fund, the MoU is considered binding on both parties.
The financial impact of the acquisition will be positive, as it will result in a management fee revenue for the company starting from the date of the fund’s launch, which is expected in the second quarter of 2024, Mulkia noted.
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