Al Akaria recovers SAR 35 mln from cash investment in Alinma Real Estate Fund

Logo of Al Akaria

Saudi Real Estate Co. (Al Akaria) recovered SAR 35 million from the cash investment (subscription) amount of SAR 40 million in Alinma Real Estate Fund.

The company said in a bourse filing that it sold and emptied the plots of land located in Al-Malqa in Riyadh through the fund, with a sale value of SAR 137.34 million (excluding the real estate transaction tax) that was previously announced in December 2021.

Al Akaria also signed Appendix No. 2 of the fund's termination agreement on Oct. 19, 2021, to exclude the sold lands deeds from the process of transferring and redeeming lands previously invested in the fund deeds in its favor.

Moreover, the developer is currently in the process of studying the available alternatives related to the process of transferring the title deeds of the lands previously invested in the fund by the company (as an in-kind investment) in its favor and studying the impact of the real estate transaction tax on the process of transferring those deeds, taking into account future projects and plans, in order to choose the appropriate alternative that achieves the greatest value for the shareholders and investors.

This event is 95% complete and is expected to be fully completed by Q2 2022, the statement added.

The costs associated with the event will be determined after studying and selecting the appropriate alternative for the process of transferring the deeds and determining the impact of the real estate tax on the transfer process.

In November 2020, Al Akaria announced receiving a notice about the termination of Alinma-Al Akaria Fund for Real Estate Development, upon its request, which owns 100% of the fund's investment units, Argaam reported.

The company said last June that it was also planning to transfer the ownership of pre-invested land plots. This is in addition to transferring in-cash investment amount of SAR 40 million after an agreement with Alinma Investment to deduct SAR 10 million to cover expenses related to asset management and fund structuring.

On Sept. 30, 2018, Al Akaria signed an agreement with Alinma Investment, a unit of Alinma Bank, to set up a new joint fund, Alinma-Al Akaria Fund for Real Estate Development, at a total value of SAR 1.5 billion.

Last December, the company announced selling residential and commercial land plots located in Al-Malqa district, Riyadh, at a total value of SAR 137.34 million, excluding real estate transaction tax.