Al Mashaar REIT tenant requests rent waiver from March 1 on lower returns

Muscat Capital Co. received a notification from Eskan Development and Investment Co., a tenant of Al Mashaar REIT Fund’s properties, requesting to waive rents due from March 1, 2020, the fund manager said in a bourse statement.

The request came on the back of impacted rent returns affected by the precautionary measures issued by the relevant government authorities to combat coronavirus outbreak.

The fund manager said it had discussions with the tenant regarding the returns of rental properties in Makkah, adding that it has been negatively affected by the current market conditions, temporary suspension of Hajj and Umrah visas for citizens and pilgrims, as well as the suspension of international and domestic flights.

Muscat Capital expects these developments to have a negative impact on the fund’s performance.

Any further significant developments regarding the matter or any new lease arrangements for rental properties when terminated will be disclosed in a timely manner, the fund manager noted.