Al Rajhi REIT Fund manager attends Rama Plaza lease contract court case

Al Rajhi REIT Fund logo

Al Rajhi Capital, the fund manager of Al Rajhi REIT Fund, attended a court hearing on Dec. 21, 2020, for a case filed by the master lessee of Rama Plaza –AlFouzan Trading and General Contracting Co., the firm said in a statement to Tadawul.

In the case, AlFouzan Trading requested the court to re-balance the lease agreement, claiming its inability to fully benefit from the intentions of leasing the property.

Al Rajhi Capital worked towards negotiating an amicable settlement with AlFouzan to the interest of unitholders without forgoing their rights, it added.

Since then, Al Rajhi Capital worked towards negotiating an amicable resolution to the benefit of the unitholder without forgoing their rights and without reaching an agreement, it added.

The current rent of Rama Plaza is SAR 4.91 million per Hijri year.

The fund manager will follow the due legal process to protect the unitholders’ interest, it said.

As the case is under court hearing, the financial impact on fund’s dividend cannot be fully ascertained at this time, the statement said. The fund manager will update the unitholders of any development arising in this matter.

According to data available with Argaam, Al Rajhi Capital announced on Sept. 30, 2020, that it had received a letter from AlFouzan Trading notifying its intention to move court.

AlFouzan Trading -- the master lessee of Narjees Plaza, Anwar Plaza and Rama Plaza – informed in the letter that the action follows extraordinary circumstances that are beyond their control, due to which it is unable to fully benefit from the intentions of the lease agreements.