Al Akaria says Alinma Al Akaria Fund terminated to restructure related projects

Saudi Real Estate Co. (Al Akaria) announced receiving a notice about the termination of Alinma-Al Akaria Fund for Real Estate Development, upon request of Al Akaria, which owns 100% of the fund's investment units, according to a bourse statement.

The fund was closed as part of the financial restructuring of the fund-linked projects, the company said. Al Akaria obtained the approval of the fund's board of directors for the termination.

The move is expected to have a positive impact on the company’s financial results, Al Akaria noted, adding that the fund closure is expected to be complete in 120 days.

Al Akaria added that it is difficult to estimate the relevant financial impact until the fund liquidation is finalized and the final account is received.

In September 2018, Al Akaria signed an agreement with Alinma Investment, a unit of Alinma Bank, to set up the fund.