Al Rajhi REIT, Rawaj Real Estate sign agreement to reschedule annual lease of 2 properties

Logo of Al Rajhi REIT Fund

Al Rajhi Capital, the fund manager of Al Rajhi REIT Fund, announced that Rawaj Real Estate Co., the anchor tenant of Blue Tower Building in Al Khobar and Luluah Warehouse in Riyadh, appointed three approved valuers to revise the lease and set it based on their average, in accordance with lease agreement’s provisions.

The company explained in a statement today on Tadawul that the annual leases for Luluah Warehouse with set at SAR 9.38 million and Blue Tower at SAR 12.33 million.

The company reviewed the lease from the beginning of third year (March 6, 2020) until the end of the lease agreement.

Accordingly, Al Rajhi Capital, announced the signing of an amended lease agreement with Rawaj Real Estate Co., today, Dec. 1.

According to the agreement, the unpaid due amounts of SAR 24.5 million for Blue Tower and SAR 18.6 million for Luluah warehouse will be rescheduled in six installments.

The first payment will be repaid upon signing the contract, while the remaining five payments will be repaid monthly. The statement expected an improvement in the available cash of Al Rajhi REIT Fund, in addition to a retreat in fund’s total rent, as a result of the decrease in the rent of Blue Tower and Luluah warehouse by 3.91% and 2.78%, respectively.

According to data available on Argaam, Al Rajhi Capital announced in April that it received a notice to terminate the lease contracts for Blue Tower Building in Al Khobar and Luluah Warehouse in Riyadh, two of Al Rajhi REIT Fund’s properties.

In July, Rawaj withdrew its previous notice to terminate the lease contracts of these properties.