Al Mashaar REIT terminates management deal with Eskan Tower 5 tenant

Logo of Al Mashaar REIT Fund

Muscat Capital Co., the fund manager of Al Mashaar REIT Fund, announced the decision not to renew the management, marketing and maintenance agreement with Eskan  Development and Investment Co. (Amnest Group), expiring on Dec. 25, 2021. 

The fund manager is currently working on studying offers for managing, marketing and maintaining the property, and will announce updates after taking the necessary approvals.

There will be no financial impact on the fund, the fund manager said in a bourse filing.

According to data compiled by Argaam, in December 2020, Al Mashaar REIT received a notification from Amnest Group, tenant of Eskan Tower 5, requesting the termination of the rent contract.

Eskan Tower 5, spanning 1,395 square meters located in Makkah, is a hotel tower to accommodate pilgrims with a rent value of SAR 12.3 million per annum.