Jadwa REIT Saudi leases Marvela Compound to National Building for SAR 250 mln over 5 years

The agreement signing

Jadwa REIT Saudi Fund signed a new lease agreement for Marvela Compound located on King Abdullah Road, King Faisal District, Riyadh.

Under the agreement, National Building and Marketing Co. (NBM) leased the residential compound for five years at an annual lease value of SAR 50 million, exclusive of value-added tax (VAT).

In a statement to Tadawul, Jadwa Investment, the manager of Jadwa REIT Saudi, said the five-year agreement begins from March 13, 2023, to March 13, 2028.

The agreement will have a positive financial impact, as it guarantees a continued occupancy rate of 100% at the same income level of the previous years, to a tenant with strong financial solvency.

The tenant is not a related party, Jadwa Investment added.

In a separate statement, NBM said it signed on Feb. 14 a real estate investment agreement with Jadwa Investment.

The financial impact of the agreement will be reflected through an increase in NBM’s operating income, expecting this increase to materialize in the second half of 2023.