Jadwa REIT Saudi lowers Jeddah land purchase price by SAR 100 mln

Logo of Jadwa REIT Saudi Fund

Jadwa Investment Co., the funder manager of Jadwa REIT Saudi Fund, announced signing an addendum today, May 2, for the purchase of a leased land in Jeddah, which included decreasing the purchase price by 20% from SAR 500 million to SAR 400 million (excluding real estate transaction tax and acquisition fees), according to a statement to Tadawul.

The decrease in the acquisition price results in an increase in the average acquisition yield to 8.96%.

The result of this transaction is expected to be positive on the fund’s financial performance in H2 2023 in the event that the deal is completed.

The fund manager will disclose any developments in this regard, the statement said, adding that the addendum is conditional on the seller obtaining all the statutory approvals within 60 days from addendum date.

Jadwa Investment announced, on April 21, 2022, that Jadwa REIT Saudi Fund signed a sale and purchase agreement for 161,300 square meter leased land in Jeddah, at a total value of SAR 500 million, excluding taxes and fees, according to Argaam's data.