Alwaha REIT unitholders approve asset increase to acquire Riyadh property

Logo of Alwaha REIT Fund

Unitholders of Alwaha REIT Fund approved on July 8 increasing the fund’s total assets and the supplementary annex to the fund’s terms and conditions through the issuance of additional units, both in-kind and in cash.

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Wasatah Capital said in a statement on Tadawul that the capital increase will range between SAR 47.906 million (minimum) and SAR 47.909 million (maximum) to complete the acquisition of the Al Jawhara Residential Building in Riyadh.

The fund signed an acquisition agreement in addition to a five-year lease with the current owner of the Al Jawhara Residential Building, Argaam data showed.

In June 2024, the board approved increasing the total asset value through the acquisition of an income-generating residential building, owned by a related party, in Riyadh.

The fund seeks to acquire the developed and income-generating Al Jawhara Residential Building for SAR 46 million, excluding the real estate transaction tax. After acquisition, the property will be leased back to the seller for a five-year period at an annual net rent of SAR 4 million and a net return of 8.7%.