MEFIC REIT inks agreement to develop Souq Sharq

MEFIC REIT Fund signed an agreement with Kayan Group to develop, renew and increase the revenue of Souq Sharq project, the fund’s largest asset, MEFIC Capital said in a bourse statement.

The deal aims to provide consultancy and marketing services, including conducting studies to renovate the complex in line with other commercial malls in the Kingdom. Renovation works will be undertaken by specialist engineering firms, MEFIC Capital added.

The fund manager also noted that it will change the complex identity and conduct a study to attract additional brands to the mall in order to enhance profitability.

The Saudi-based firm expected a positive impact on the commercial mall’s revenues through an increase in the rental price per meter, which will hence support the fund’s revenues. The complex represents almost 50% of the fund assets.

No related parties are involved in the deal, the statement added.