Mulkia REIT appoints Gulf Real Estate as West Avenue Mall property manager

Logo of Mulkia Gulf Real Estate REIT Fund

Mulkia Gulf Real Estate REIT Fund (Mulkia REIT) appointed Gulf Real Estate Co. as the property manager for West Avenue Mall in Dammam, fund manager Mulkia Investment Co. said in a statement to Tadawul.

Gulf Real Estate will manage the property rental, maintenance and supervision for SAR 800,000 annual management fees.

The fees include costs of the property management key personnel; in addition to 4% of the collected collection fees paid from the collected rents, and 5% of the new lease contracts to be paid once for each new lease contract.

The statement added that the fund will bear the operating and maintenance expenses, indicating that Gulf Real Estate, being a major unitholder, is a related party.

The appointment of the property manager is expected to have a positive impact on the fund, especially as most of the property management service fees are related to the actual collection and lease of any of the property vacant spaces.

In April, Mulkia REIT  was notified by Gulf Real Estate, the main tenant of the West Avenue property owned by the fund, of its unwillingness to continue the existing lease contract, starting from the end of the contract expiry date on Nov. 1, 2022, Argaam earlier reported.