A subsequent announcement from Musharaka Capital regarding a material development occurring on the Musharaka REIT Fund

2020-01-14 15:53:23

Element ListExplanation
Announcement Detail Further to Musharaka Capital announcement published on 11/05/2019, Musharaka Capital is pleased to announce that Musharaka REIT fund has concluded the acquisition of Al Bazai showrooms for Toyota, Lexus, and Skoda, with a dedicated car maintenance center in Riyadh, and ownership has been transferred to the fund. The total acquisition value has reached an amount of 70 million Saudi Riyals, which will be fully funded from the bank facilities available to the fund that are compatible with Islamic Sharia standards. The property will also be leased to "Saleh Abdullah Al Bazai & Sons Company", an authorized agent for Toyota and Lexus vehicles and the exclusive agent for Skoda cars in the Kingdom of Saudi Arabia. With a lease contract that extends to 15 years, the first 10 years of the contract period are binding under promissory notes. The annual rental value starts at 6,000,000 Riyals (six million Riyals), with an increase in the rental value every five years by 10%. The total land area is 10,000 square meters (ten thousand square meters) while the rental area is 12,068 square meters (twelve thousand and sixty-eight square meters). The financial impact of the deal is expected to show in the first quarter of 2020.