Announcement by OSOOL & BAKHEET INVESTMENT COMPANY regarding the occurrence of a specific event in Al-Maather REIT Fund.
Monday, December 20, 2021 at 9:30 AM
Further to the announcement of OSOOL & Bakheet Investment Company published on Rabie I 7th, 1443 AH corresponding to October 13th 2021, regarding the signing of a non-binding memorandum of understanding for the purpose of acquiring the building located in city of Sharjah in UAE and rented to Burjeel Hospital.
OSOOL & BAKHEET Investment Company announces the signing of a binding purchase agreement with the seller “AL YOUSUF LLC”, at a value of AED100,000,000 (one hundred million dirhams) inclusive of all expenses except for value added tax. The signing comes after completing the procedures for evaluating the property and technical due diligence inspection of the property. It is worth noting that the building is leased to VPS Healthcare (LLC) registered in Abu Dhabi.
VPS HealthCare LLC is well-known health care service provider in UAE, and rented the building for AED8,000,000 (eight million dirhams), subject to increment every 5 years by AED500,000 (five hundred thousand dirhams), with total rent period of 20 years.
The transaction includes the realestate asset and excludes any medical equipment. The transaction is subject to accomplishment of government registration and approval.
The Fund Manager disclose no related party or conflict of interest in this transaction, and the transaction will be financed through sharia compliant credit facility available to the fund.
The impact of this event will be positively reflected on the unit holders, as it will add diversity to the fund's assets, as well as geographical diversification, in addition to achieving a positive return as a result from the difference between the rent yield achieved and the financing cost and the fund's expenses.