Raza Inc, the real estate arm of the Saudi Public Pension Agency (PPA) and a subsidiary of Al Ra’idah Investment Company (RIC), announced today a slew of relief measures for commercial clients within its property portfolio. Measures include flexible rent payments and rent deferrals for a period of up to six months.
The rent deferral programme benefits businesses that operate in Raza’s property portfolio across Saudi Arabia. Between 1st March and 31st August 2020, Raza is holding off from issuing any rental invoices to businesses and will not have to pay any late payment fees during this period.
Waleed Aleisa, CEO of Raza, described the measures as “our commitment to partner with our tenants and their employees to help cushion the impact of coronavirus on their businesses and livelihoods.”
“The pandemic is uniquely challenging and unprecedented that puts immense pressure on managing business cash flow. While we are developing a robust stimulus package in close coordination with PPA and RIC, the interim rent relief measure enables businesses and retailers to meet the challenges ahead.”
“At Raza, we are guided by our principles of building relationships and delivering experiences, and at times like these, we just don’t talk about the values, but we walk the talk. We are not just a landlord, but we are also a partner to our tenants.”
The relief measures are applicable to commercial tenants in a number of properties including Digital City in Riyadh, a 450,000 sqm development that is home to some of the largest private sector and government organisations such as PIF, Qiddiya, and Red Sea Group, among others.
Business establishments operating in other properties can avail the rent relief programme: the Diplomatic Quarter; King Abdulaziz Towers; Al Dhabab Towers; and Hamra Al Sharq.
Raza’s incentives come at a time when the organisation is pressing ahead with two major residential developments in Saudi Arabia. East Village, the residential cluster of Digital City in Riyadh, will be comprised of over 2,200 residential units and will feature amenities such as a community mall, parks, and children day care centres, among others.
Work on the Jeddah Obhur City development, the phase one of which houses over 2,500 residential units, is also in the final stages of construction. Upon completion and delivery in Q3 2020, these projects will make Raza the largest community landlord in Saudi Arabia.