Aljazira REIT’s board approves filing lawsuit against tenant for rent default

Aljazira Capital, the fund manager of Aljazira REIT Fund, said that Takhzeen Logistics Co., the tenant of the warehouse complex 3, bloc 10, defaulted on a number of rent payments.

Aljazira REIT’s board of directors approved the plan to bring a lawsuit against the tenant to fulfill its rent dues, and the litigation fees, Aljazira Capital said in a bourse filing on Sunday.

Under the lease agreement, the fund has the right to take necessary legal procedures if a dispute with a tenant is not settled amicably.

The fund expects a negative financial impact on its cash dividends, as Takhzeen’s rents represent 26.08% of the fund’s annual rentals and 5.01% of its net asset value, based on Aljazira Fund’s preliminary financial statements as of June 30, 2020.

Aljazira Capital will take the necessary regulatory and contractual measures to protect the rights of the unit holders, and will announce any relevant updates in due course, the statement added.