OSOOL & BAKHEET INVESTMENT COMPANY announces occurrence of a specific event to AL Maather REIT Fund
Sunday, April 19, 2020 at 3:45 PM
ELEMENT LIST EXPLANATION
OSOOL & BAKHEET INVESTMENT COMPANY announcement regarding occurrence of an event to AlMa’ather REIT.
Description of the Event:
On view of the recent developments of The corona global pandemic, The fund manager of Al-Ma’ather Fund, “Osool and Bakheet Investment Company” would like to thank Saudi government and all authorities and commission who help in fighting this pandemic and aiming to protect society, and protect the health of its citizens and residents.
In reference to the role of the fund manager in informing investors about the impact of this pandemic on the fund, the fund manager would like to clarify that it is reviewing the impact of this pandemic on all economic sectors represented by the fund's real estate tenants. The Fund Manager recently received requests from few tenants who were affected by the precautionary measures to combat the spread of the Corona Virus (COVID-19), and the total rental value of their requests so far represents less than 5% of the total annual rental income of the Fund, and accordingly the Fund Manager would like To clarify that an assessment of the impact is still taking place and still early to conclude final assessment. It is worth noting that Al-Ma’ather Fund has more than 200 tenants and there is no exposure to any anchor tenant whose annual rental value constitutes more than 14% of the total revenue of the fund, therefore, fund manager expects potential further impact if more requests that might be received from other tenants, which will also impact fund’s business, in addition to impact on balance sheet through rise of receivables during this year, and that require processing in accordance with the accounting standards followed in the fund. The fund manager will continue to assess the impact and announce any material claims regarding the request to suspend of payment of rent or avoid it, and will process such requests in line with ensuring the protection of the unit holder’s interest and in compliance with the laws and regulations that guarantee the rights of parties in rent agreement.
The Impact Caused by the Event:
The impact is still under assessment.