Alandalus Property inks REIT deal with NCB Cap

Alandalus Property Company (Alandalus Property) on Aug. 2 signed a SAR 1.35 billion assets sale agreement of a Real Estate Investment Traded Fund (REIT) with NCB Capital, the company said in a statement to Tadawul on Wednesday.

Under the agreement, NCB Capital will manage the fund after obtaining the approval of the Capital Market Authority (CMA).

According to the contract, the property firm will evacuate and sell Alandalus Mall as well as Staybridge Suites Jeddah Alandalus Mall, the statement said.

As for the financial impact of the deal, the cash part of the sale is expected to result in a SAR 225 million capital gains.

The agreement is still subject to the approval of the general assembly, the company said.

Al-Andalus aims to diversify its investments portfolio, and improve its liquidity and solvency, the company added.

Back in April the company signed a memorandum of understanding (MoU) with the brokerage to set up a REIT fund, in which Alandalus will have the majority stake.