AlJazira REIT says preliminary ruling orders tenant to pay SAR 5.2 mln in unpaid rent

Logo of AlJazira Capital

AlJazira REIT Fund received, on Sept. 19, a preliminary judgment deed in its favor for the claim for property rent filed against Takhzeen Logistics Co., fund manager AlJazira Capital said in a statement to Tadawul on Sept. 20.

The General Court in Riyadh ordered Takhzeen Logistics to pay the fund SAR 5.2 million to cover unpaid rent, the statement said.

The court also dismissed the plaintiff's claim for value-added tax (VAT) for lack of jurisdiction, and refused the defendant's request for rent reduction.

The two parties have the right to object to the ruling, within a period of 30 days from the date of the ruling, the statement said, citing the court order.

AlJazira Capital expects a positive impact on the fund’s cash distributions, in the event that the judgment is final.

Any further developments will be announced in due course, the statement noted.