AlAhli REIT Fund approves appointing Al-Andalus Property as developer for Alandalus Mall expansion

Logo of AlAhli REIT Fund 1

SNB Capital, the fund manager of AlAhli REIT Fund 1, announced that the fund's board of directors gave a nod to the appointment of Al-Andalus Property Co., a related party owning 68.72% of the fund, as a developer to expand Alandalus Mall.

In a bourse statement, SNB Capital added that the developer will increase the parking spaces, which will add, according to the project business study, around 15,000 square meters as additional gross leasable area.

The project's estimated cost reaches SAR 131 million, the statement said, adding that the fee payable to the developer will be 10% of the development costs, capped at SAR 11.5 million.

The terms of the contract were set on arm's length basis.

The period expected to complete the development work is 130 weeks, staring from the contract date.

Upon completion, the project is expected to have a positive impact on Al-Andalus Mall and the fund.