Addendum Announcement from Osool & Bakheet Investment Company Regarding occurrence of a specific event to AL Maather REIT Fund
Wednesday, September 16, 2020 at 5:45 PM
Description of the Event
Further to the announcement of Osool & Bakheet Investment Company published on 01/08/1442H corresponding to 27/08/2020G, concerning the fund manager acknowledged receiving a letter from the “Gulf ELCON Company for Trading and Contracting” which is the anchor tenant of Al-Rabie GENX asset that located on prince Mohammed bin Salman road-Riyadh, The tenant wants to hand over the rental units which represent a rental value of SAR3.75 million (7.0% of the Gross annual rents).
The fund manager clarifies that the property was received from the tenant, while the rent claim case against the tenant is under dispute in the General Court of Riyadh.
Taking into account the interest of the fund by seeking to achieve future revenues, and utilize the main space in the property to serve exiting tenant, and given that the tenant is defaulting on payment, The fund manager had accepted to receive the units and continuing to claim the rental value due for the previous period from the tenant.
The Impact Caused by the Event
Temporary suspension in part of the fund's revenue amounting to 3.75 million riyals (7.0% of the Gross annual rents), representing the rental value of the leased property