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Mulkia Gulf Real Estate REIT fund announces the signing of an acquisition agreement in Hospitality and Leisure Sector

[vc_row css=”.vc_custom_1459507978186{margin-bottom: 100px !important;}”][vc_column width=”1/4″ offset=”vc_col-lg-9 vc_col-md-9″ css=”.vc_custom_1452702342137{padding-right: 45px !important;}”][vc_empty_space][vc_empty_space][vc_custom_heading source=”post_title” font_container=”tag:h4|text_align:left” use_theme_fonts=”yes” el_class=”no_stripe”][stm_post_details][vc_column_text css=”.vc_custom_1512023829685{margin-bottom: 20px !important;}”]Mulkia Gulf Real Estate REIT announces signing of an acquisition agreement in the hospitality and leisure sector on the 29th of November 2017, whereby the Fund will acquire a 76% stake in Vivienda Hotel Villas Al Hada which is located on a 10,000 square meters plot of land, against SAR 95 million paid to the owners of the project that are not parties related to the Fund Manager, and the acquisition will be financed in part through any offering surplus available in the Fund of SAR 18 million. The Fund Manager intends to fund the rest of the acquisition value of SAR 77 million by borrowing from local banks with the aim of completing the acquisition deal within two months from the date of signing the agreement.
The project lease contract has been signed by Forus Real Estate investment & Development Company for a period of 20 years starting with a lease amount of SAR 10,937,500 for the first five years. The rent will be increased by 7% every five years. The rent will be paid proportionally with an acquisition value where the Mulkia Gulf Real Estate REIT share is SAR 8,312,500, upon completion of the acquisition, under the lease agreement, the tenant will provide a bank guarantee renewal annually equivalent to the value of the following year’s rent plus a two-years payment renewal order renewed, the tenant is considered to be one of the pioneers in operating luxury residential complexes in Saudi Arabia.
Mulkia Plaza Development Real Estate Fund, managed by Mulkia Investment Company, owns a 24% stake in the project. Mulkia Gulf Real Estate REIT Fund and Mulkia Plaza Development Real Estate Fund will jointly own the project if the acquisition is completed. Any updates related to this subject after the acquisition is completed will be announced later and the acquisition of financing the rest of the acquisition, noting that the Fund will contribute an SAR 18 million share in the project, which represents a percentage of 14.4% until completion of the acquisition.[/vc_column_text][stm_post_bottom][/vc_column][vc_column width=”1/4″ offset=”vc_hidden-sm vc_hidden-xs”][vc_empty_space][vc_empty_space][vc_empty_space][stm_sidebar sidebar=”2864″][/vc_column][/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1459505959648{margin-bottom: -60px !important;}” el_class=”third_bg_color”][vc_column][/vc_column][/vc_row]