OSOOL & BAKHEET INVESTMENT COMPANY Announces the Occurrence of Specific Event to AL Maather REIT Fund
Thursday, October 14, 2021 at 12:00 PM
Description of the Event
OSOOL and Bakheet Investment Company, the manager of Al-Ma'ather REIT Fund, announces the signing of a non-binding memorandum of understanding for the purpose of acquiring the Burjeel Hospital building in the city of Sharjah in the United Arab Emirates. With buildup area of 16,758 sqm, With an area of 6,033 (six thousand and thirty-three square meters), the tenant of the property is VPS Healthcare (LLC) registered in Abu Dhabi, and the annual rental value is 8,000,000 (eight million Arab Emirate Dirhams), with an increase of AED 500,000 (Five hundred thousand dirhams) every five years for a rental period of 20 years, and the memorandum expires on 04/12/2021 AD, provided that due diligence procedures are completed during this period and the legal procedures are completed in preparation for the signing of a binding purchase agreement that will be announced at a later period.
The purchase value is 100,000,000 (One Hundred Million Arab Emirate Dirhams) and the purchase will be fully financed by the previous Banking facilities in the Fund.
The Impact Caused by the Event
The impact of this acquisition will reflect positively on the funds units’ owners and it will add diversity and net positive return as result from the differences between financing costs and rental income.