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Eye of Riyadh
Business & Money | Monday 1 July, 2024 8:53 am |
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adwa REIT Saudi sells Dammam tower for SAR 190M

adwa Investment Co., the fund manager of Jadwa REIT Saudi Fund, signed today, June 30, an agreement to sell Al Yaum Tower, which is located on King Fahad Road in Dammam, for SAR 190 million (excluding real estate transaction tax), the company said in a statement to Tadawul.

 

This came after obtaining the approval of the fund’s board on the property sale plan, said the fund manager, adding that the fund had acquired the property in February 2018 and received a total lease income of SAR 124.8 million, resulting in an average yield of 7.57% over this period.

 

The sale would provide more flexibility for the fund and its financial position. The proceeds could be geared towards many avenues such as acquiring more accretive income-generating real estate assets and partially pay off existing credit debts, which would alleviate the fund's financial liabilities, according to the fund manager.

 

The transaction is expected to have a positive long-term impact on Jadwa REIT Saudi’s performance, said Jadwa Investment, noting that there are no related parties to the deal.

 

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