Jadwa REIT Saudi inks contract to sell Rawd Al-Jenan Schools in Riyadh for SAR 27 mln

Logo of Jadwa REIT Saudi Fund

Jadwa REIT Saudi Fund signed an agreement to sell Rawd Al-Jenan Schools’ building in Al Nakheel, Riyadh, for SAR 27 million, fund manager Jadwa Investment said in a bourse statement.

The deal was concluded after obtaining the approval of the fund’s board on the property sale plan and signing the sale and purchase agreement with the relevant parties.

The transaction resulted in a 12% capital gain on the book value of the property, the fund manager said, noting that the fund acquired the property in January 2019 and got an annual net rent yield of 10% over this period.

This sale process provides more flexibility for the fund and its financial position, as it is possible to use the proceeds of the sale for many options, such as enhancing and raising the quality of the current assets, which will result in maximizing their returns, acquiring more accretive income-generating real estate assets, or using the proceeds to partially pay-off the existing bank facilities that will alleviate the financial liabilities of the fund.

The deal is expected to have a positive financial impact on the fund’s financial statements for H2 2022, the firm added.