Andalus Real Estate Company revealed the details of its signing of the agreement for the sale of the real estate fund project with Al Ahli Financial Company, which will manage this fund, where the sale consisted of the Andalus Mall and the adjacent hotel in Jeddah - with the company retaining a majority stake in this fund, for a value of 1350 million riyals and 70% of the sale value (945 million riyals) in exchange for the company's ownership of units in this fund, while the remaining 30% (405 million riyals) of that value will be paid in cash in favor of the company.
Andalus Real Estate Company signed a memorandum of understanding with Al Ahli Financial Company to establish an income-producing real estate fund “REIT” in April last year. <On April 24, Andalus Real Estate signed a memorandum of understanding (MoU) with Al Ahli Financial to establish a real estate income generating fund (REIT) to own Andalus Mall and its adjacent hotel in Jeddah - with the company retaining a majority stake in the REIT. Under the said agreement, both the Andalus Mall and Staybridge Suites Jeddah Andalus Mall will be sold and emptied in favor of the fund, in accordance with the relevant capital market laws and regulations.
Al-Andalus reported that the company has entered into an agreement with Al-Ahli Financial Company to establish an income generating real estate fund. Andalus said that all operations will be completed after obtaining the regulatory approval from the Capital Market Authority, as the agreement includes a clause stating that its implementation is conditional on obtaining the approval of the company's General Assembly, which will be held soon for this purpose, according to the company.
Alandalus expects that the expected financial impact resulting from the payment of the cash portion of 30% of the transaction value is a capital gain for the company estimated at approximately SAR 225 million, upon obtaining regulatory approvals and finalizing the emptying of the property.
Alandalus expects that the expected financial impact resulting from the payment of the cash portion of 30% of the transaction value is a capital gain for the company estimated at approximately SAR 225 million.
