MEFIC REIT extends lease contract for hospitality project by 5 years until 2040

MEFIC Capital, the fund manager of MEFIC REIT Fund, announced today, Oct. 19, the extension of the lease of the land plot for the hospitality project by additional five years until March 31, 2040.

In a bourse statement, the fund manager said that the rent for the period from April 1, 2020, to March 31, 2021, will be reduced to SAR 3 million, from SAR 5.5 million.

Upon the extension of the lease period, the lease value will total SAR 7 million for the period from April 1, 2037, to March 31, 2040.

The fund manager expects a positive impact from the extension of the lease period on the usufruct value, as well as the fund’s cash flow over the coming period.