Taleem REIT postpones rent increments for one year

Logo of Taleem REIT Fund

Taleem REIT Fund’s board of directors approved that the rent increments due in 2021 will be postponed by one year and will be affected in 2022, fund manager Saudi Fransi Capital said in a statement to Tadawul today, March 9, 2021.

The decision came in the light of the impact of COVID-19 pandemic on the economy in general and on the education sector in particular, the statement said, adding that it is in line with the fund’s aim to preserve its strategic contractual relationships with its tenants.

The fund’s board also approved, subject to tenant’s acceptance, appointing an independent financial consultant to assess the financial stress caused by the pandemic on the tenants.

Any extension of financial support measures for tenants by the fund will be based on the independent financial consultant's report, it added, while noting that the recommendation of the financial consultant will not be binding on the tenant(s).

The fund manager and board of Taleem REIT Fund also assured all stakeholders that they retain confidence and optimism in both the Saudi economy and the positioning and quality of Taleem REIT Fund asset.

Saudi Fransi Capital will continue to announce any material developments in due course.

By suspending the rent escalation that was due in 2021, the contractual rent will remain at the same level as it was in 2020. The financial consultant may recommend other financial support measures, the impact of which will be determined in due course, the statement said.