Alkhabeer REIT sells Ahlan Court property in Jeddah for SAR 71.8M

Logo of Alkhabeer REIT Fund

Alkhabeer Capital, the fund manager of Alkhabeer REIT Fund, completed, on Aug. 3, the sale of Ahlan Court property in Al-Andalus district, Jeddah, for a net selling price of SAR 71.75 million.

In a statement to Tadawul, the fund manager said the buyer will bear real estate transaction tax and brokerage fees, adding that an amount of SAR 14 million will be paid by the current tenant in exchange for terminating the current lease agreement.

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The deal will reflect positively on the fund's results, the statement said.

The sale came after obtaining the fund's initial approval and the fund manager’s completion of the necessary real estate valuations in accordance with the fund’s terms and conditions.

Alkhabeer REIT acquired the property in February 2019, generating an average annual rental income of around 8% over its holding period.

This sale bolsters the fund's flexibility and its balance sheet, allowing it to use the proceeds to pay off part of its outstanding bank facilities. It also seeks to finance the acquisition of other income-generating real estate assets, or develop and enhance the performance of properties owned by the fund.

Alkhabeer REIT's board of directors gave an initial approval, on March 19, for an offer to purchase one of its properties, according to Argaam data.