Musharaka REIT fund manager agrees to 50% cut in fees for properties acquired until 2023-end

Logo of Musharaka REIT Fund

Musharaka REIT Fund obtained approval from the fund manager, Musharaka Capital, to reduce management fees by 50% on new properties that might be acquired through the bank facilities available to the fund.

This comes in order to mitigate the negative impact of the continuous rise in SAIBOR, due rising interest rates, the fund manager said in a statement on Tadawul, noting that this reduction will be effective until Dec. 31, 2023.

The impact will be positive when acquiring any new properties, given that it will reduce the total costs of the fund, the statement added.