Saudi-based Mulkia Gulf Real Estate REIT (real estate investment trust) said its fund manager Mulkia Investment Company, has signed a facility agreement with kingdom's top bank Al Rajhi Bank worth SR600 million ($160 million).
The move is aimed at reducing the financing costs and also extending the loan term for the benefit of the unit holders, said a statement from Mulkia.
A part of the financing facility, which has a seven-year tenure, will be used to pay outstanding facilities worth SR342.6 million withdrawn from Bank Albilad, while the remaining part is for the acquisition of additional real estate assets for the fund.
On the repayment method, Mulkia said finance costs will be paid every six months, while the principle of the loan will be paid as a bullet payment at the end of the agreement period.
There is also a provision to extend the loan facility within a sufficient time before the end of the agreement period, it added.
In another development, Mulkia Investment Company said its board has appointed Ibrahim Ahmed Al Bassam and Company (PKF) as zakat advisors for its REIT fund.
The fund manager has updated the Mulkia Gulf Real Estate REIT fund’s terms and submitted them to the CMA for further approval to proceed with the registration process at the General Authority for Zakat and Tax, it added.-TradeArabia News Service
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