Musharaka Financial Company announced the completion of all regulatory procedures related to the acquisition of the Giardino Hotel, located in Riyadh, The transfer of ownership of the property to the Musharaka REIT has been finalized, with the acquisition valued at 85.5 million riyals. The transaction was fully financed through banking facilities available to the fund and compliant with Sharia law.

An addendum to the lease agreement was also signed with the tenant, “Maskan Al-Salam Company for Development and Commercial Investment,” which includes the transfer of all rights and obligations arising from the lease agreement from the previous owner to the current owner “the Fund.” The lease term extends for 10 years, beginning on November 1, 2021, and ending on October 31, 2031, and is secured by promissory notes received in advance from the tenant. and the average annual income over the term of the contract is approximately 7.8 million riyals, noting that the first year’s rent of 7 million has been collected in advance.

The Fund’s manager explained that the financial impact of this acquisition will be positive, as it will increase the Fund’s profits and reduce the risk of declining net profit margins or a decrease in the Fund’s future revenues. Furthermore, the long-term nature and binding nature of the lease agreement will help the fund achieve cash savings.