Jadwa announces sale of prime Saudi residential property

Jadwa announces sale of prime Saudi residential property

Saudi-based Jadwa Investment Company said it has sold one of its key properties - Al Fanar Residential Compound - located at Al Rawabi district in the kingdom's Al Khobar region - for SR90 million ($24 million).

Jadwa, in its capacity as the manager of the Jadwa REIT Saudi Fund, had acquired the property in 2018.

For the last five years, the Fund had been enjoying an annual net rent yield of 8.25%, stated Jadwa in its filing to Saudi bourse Tadawul.

The sale and purchase agreement was signed after obtaining the approval of the Jadwa REIT Fund board of directors, it stated.

According to Jadwa, this sale process provides more flexibility for the fund and its financial position, as it is possible to use the proceeds of the sale for many options, for example, but not limited to: using them to acquire more accretive income-generating real estate assets.

It can also be utilised for partially paying off the existing bank facilities which will alleviate the financial liabilities of the Fund, it staated in the bourse filing.

The result of this transaction will be positive on the Fund’s financial performance in the second half, it added.

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