Musharaka REIT Fund — Capital/Financing Update 2021

Sep 26, 2021

Addendum Announcement from Musharaka Capital Regarding further material information on Musharaka REIT

4335 · 26/09/2021 09:08:32 · Announcement #64959 · View on Saudi Exchange

Addendum Announcement from Musharaka Capital Regarding further material information on Musharaka REIT

4335

MUSHARAKA REIT

-0.49 %

1443/02/19     26/09/2021 09:08:32

Element List	Explanation
Date of the Previous Announcement	2021-07-11 Corresponding to 1442-12-01
URL of the Previous Announcement	Click Here
Subject of change	With reference to Musharaka Capital’s announcement (the fund manager of Musharaka REIT) on (01/12/1442 H.) corresponding to (11/07/2021 G.), the company is pleased to announce that it has completed the legal and regulatory procedures concerning the acquisition of “Gardinio Hotel” which is located in Riyadh, Olaya district, Takhassusi Street. The acquisition was made for SAR 85,500,000 financed totally by Sharia-compliant credit facility and title-deed has been successfully transferred to Musharaka REIT.

Furthermore, the lease agreement has been transferred to the Fund as “landlord” with “Maskan Al Salam co. for development and commercial investment” as “tenant”, for 10 years lease commencing on November 1st, 2021, for average annual revenue of SAR 7,775,000, knowing that the first rent installment of SAR 7,000,000 has already been received by the fund in advance. The lease agreement is irrevocable for the entire 10 years and the rent installments are guaranteed by promissory notes. The Impact Caused by the Change The fund manager emphasizes that the transaction would have positive impact on Musharaka REIT’s results. It will help enhance the fund’s income and reduce any future volatility in the revenue stream. Also, the property’s long tenancy will help generating sustainable future cash flow for unit holders.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.