Jadwa REIT Saudi gets CMA approval for supplementary terms to increase total asset value

Logo of Jadwa REIT Saudi Fund

The Capital Market Authority (CMA) approved the supplementary annex of the terms and conditions (T&Cs) of Jadwa REIT Saudi Fund, requested by Jadwa Investment Co., the fund manager.

The fund manager said in a bourse statement that this is for the purpose of increasing the fund’s total assets value by issuing additional units.

Prior to the unitholders meeting that will be held to vote on increasing the fund's total assets value by issuing additional units, the fund manager will publish the supplementary annex of the T&Cs to the unitholders, including all the information regarding increasing the fund's total assets value by issuing additional units.

The annex of the T&Cs must include all relevant information the unitholders need to know before making a voting decision on increasing the fund's total assets value by issuing additional units, including information about the acquisition transaction and risk factors.

A voting decision without reading the T&Cs and its supplementary annex carefully or fully reviewing their content may involve high risk. Therefore, unitholders should carefully read the T&Cs and its supplementary annex in order to make a well-informed decision when voting on increasing the fund's total assets value by issuing additional units.

If the T&Cs and its supplementary annex prove difficult to understand, it is recommended to consult with an authorized financial advisor.

The CMA’s approval of a particular fund manager's request to add a supplementary annex to the T&Cs for the purpose of increasing the fund’s total assets value by issuing additional units should never be viewed as an endorsement.

The approval merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.

According to data compiled by Argaam, the board of directors of Jadwa REIT Saudi Fund agreed in March to increase the fund's total assets by SAR 370 million in order to acquire a new real estate asset in Riyadh.