Date of the Previous Announcement: 28/04/2022
URL of the previous announcement: LINK
Description of the Event:
Mulkia Investment Company announces, in its capacity as the fund manager of Mulkia Gulf Real Estate REIT, the appointment of “Gulf Real Estate Company” as the property manager for West Avenue Mall, owned by the fund and located in Dammam. To manage the rental, maintenance and supervision of the property. The fees for the property management contract will be 800,000 Saudi Riyals per annum for administrative expenses, hiring and bearing the costs of key staff to manage the property in addition to 4% collection fees paid from actual collected rent, and 5% of the value of new leases to be paid for one-time for new leases. The Fund will bear the operating and maintenance expenses of the property. “Gulf real estate Company” is a related party as they are a major unit-holder of the fund.
The Impact Caused by the Change:
A positive impact on the Fund is expected as a result of the appointment of the property manager, especially since most of the property management services fees are linked to the actual collection and leasing of any vacancies in the property.