OSOOL & BAKHEET INVESTMENT COMPANY Announces the Occurrence of Specific Event to AL Maather REIT Fund
Wednesday, May 26, 2021 at 8:10 AM
OSOOL & BAKHEET INVESTMENT COMPANY Announce Regarding the occurrence of an event to AlMa’ather REIT
Description of the Event:
Osool and Bakheet announces signing of a lease contract for hospitality units available in Rabie GENX property which is located at the intersection of Al Qiyas Street with Prince Mohammed bin Salman road in Riyadh, and the duration of the contract is 8 years, given that first three years of the contract are binding and the follow five years are optional for the tenant.
The tenant is Taleen, well know operator for hospitality units, and the value of the first year’s rent is 2.2 million (two million and two hundred thousand Saudi riyals), and the rental value increases by 10% as of the fourth year, as the total rental values obtained for the contract period are 18.7 million riyals (eighteen million seven hundred thousand Saudi riyals).
The fund manager notes that the hotel units in Al Rabie Genx property had previously evicted the tenant from "Gulf ELCON Company for Trading and Contracting " under a rent claim case and a judgment in favor of the fund has been issued and is being implemented.
The Impact Caused by the Event:
Increase in the fund's rental income and net operating income.