– Announcement –
Alkhabeer Capital Announces Material Developments to Alkhabeer REIT
Alkhabeer Capital, the Fund Manager of Alkhabeer REIT (“the Fund”), announces that it has decided to cancel the lease contract signed with the main tenant (tenant 100% of the property,) Suliman Al-Qadeebi Sons Contracting Company, related to the Fund’s real estate asset, Gallery Mall in Tabuk, in order to preserve the rights of the Unitholders, as well as to achieve a higher level of collectable rent income through assigning this real estate asset to new operators aiming to raise the operational efficiency of the real estate asset compared to the previous one, and thus, maximizing the collected rental income.
In order to ensure the greatest possible guarantee for collecting rental income from the real estate asset owned by the Fund, which would enhance the Fund’s income and cash distributions, the Fund Manager is currently working on studying proposals for managing, operating and leasing the real estate asset, which will be announced after taking the necessary approvals.
Therefore, the impact of this development, in the short term, will be negative due to the decrease in rental returns compared to the previous contract. Nevertheless, the Fund Manager expects that this development will have a positive impact on the Fund in the medium and long term.
– Ends –