Saudi Al Rajhi REIT says lessee to file rent relief lawsuit

This comes due to uncontrollable circumstances that impeded Al-Fouzan Trading from fully benefiting from the intentions of the lease agreements

  
A man walks past a sign of Al Rajhi Capital company in Riyadh, Saudi Arabia, November 8, 2017. Image for illustrative purposes.

A man walks past a sign of Al Rajhi Capital company in Riyadh, Saudi Arabia, November 8, 2017. Image for illustrative purposes.

REUTERS/Faisal Al Nasser

Riyadh – Al Rajhi Capital, the fund manager of Al Rajhi REIT, received a letter from Al-Fouzan Trading and General Contracting Co, which is the master lessee of Narjees Plaza, Anwar Plaza, and Rama Plaza, stating that it is proceeding to court for either rent exemption or reduction.

This comes due to uncontrollable circumstances that impeded Al-Fouzan Trading from fully benefiting from the intentions of the lease agreements, according to a bourse statement on Wednesday.

The Riyadh-based assets contribute around 8.7% of the total revenue of the fund. They are fully leased to Al-Fouzan Trading on a triple net basis at a combined annual rent of SAR 14.04 million per Hijri year, or SAR 14.47 million per Gregorian year.

The announcement’s material effect on the fund’s dividends cannot be assessed at the moment, the fund manager noted, adding that it will provide any material developments in due course.

Source: Mubasher

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