Jadwa Investment Company, in its capacity as the manager of Jadwa REIT Saudi Arabia, announced the termination of the current lease contract for Al-Youm Tower located on King Fahd Road in Dammam and the signing of a new master lease agreement for the entire Al-Youm Tower on 25/03/1443 AH corresponding to 31/10/2021 AD.

The Fund signed the agreement, according to which Worley Parsons Engineering Consultants, as the tenant, leased the entire Al-Youm Tower at an annual rental value of 16,146,993 riyals for each year of the agreement period, not including value added tax, as the previous agreement expires on 30/09/2022, and where the landlord and the tenant have agreed to conclude a new agreement.

The term of the agreement is 6 calendar years starting on 01/08/2021 and ending on 31/07/2027, provided that the tenant has the right after 4 years from the beginning of the term of the agreement to terminate it by written notice 9 months prior to the date of termination.

Jadwa expected the rental value of the property to decrease from SAR 25,263,192 to SAR 16,146,993, where the decrease represents approximately 4.26% of the Fund's total annual income as this effect is only related to the last year of the lease term of the previous agreement. The signing of the new agreement guarantees the continued occupancy of the property at 100% with a high solvency tenant.