Al Rajhi REIT secures SAR 500 mln banking facility from Al Rajhi

Al Rajhi REIT Fund has signed on Monday a SAR 500 million shariah-compliant financing facility agreement with Al Rajhi Bank, Al Rajhi Capital the fund manager said in a bourse statement.

The amount, which is covered by a promissory note and a property mortgage, will be withdrawn until June 30, 2019.

The Loan will be used to fund the acquisition of various income generating real estate assets by the REIT in line with its strategy, the statement added.

During the tenure of the facility, interest will be serviced on a quarterly basis in arrears with a bullet principal repayment at the end of the contractual period after seven years.