Al Maather REIT announces final court judgment in Al-Rabie GENX tenant case

Osool & Bakheet Investment Co., the fund manager of Al Maather REIT Fund, announced today, April 13, 2021, that the Court of Appeal endorsed the previous decision without any change, obligating Gulf ELCON Company for Trading and Contracting to pay SAR 4.25 million from the remaining rent amount due from the defendant for 21 months.

The fund manager is working to enforce the final judgment on the defendant to preserve and protect the rights of fund unit owners, according to a bourse filing.

The rental amount has been fully allocated as non-performing receivables provisions as per accounting standard; therefore, the outcome's effect after receiving the above-mentioned amount will be positive.

The fund manager clarified that the judgment acquired the final character does not mean receiving the amount.

Any update will be announced in due course.

In August 2020, Osool & Bakheet Investment received a letter from Gulf ELCON Company for Trading and Contracting, the anchor tenant of Al-Rabie GENX assets, seeking to hand back the leased units with a rental value of SAR 3.75 million, Argaam reported.