Mulkia Investment signs SAR300mn Shariah compliant facility from Bank Albilad
RIYADH: Mulkia Investment has announced signing of an additional SAR 300 million Shariah compliant facility from Bank Albilad for Mulkia Gulf Real Estate REIT. Effective from 19/11/2019, the duration of the additional facility period is five years. The full amount of drawdowns shall be paid in one installment at the end of facility period. During the facility period, only the financing costs will be paid. The purpose of the additional Facility is to finance the expansion plan of Mulkia Gulf Real Estate REIT Fund through the acquisitions of income-generating properties inside the Kingdom of Saudi Arabia, as per the Fund's investment strategy, which shall be reflected positively on the fund's net income and cash dividends due to the difference between the income generated from acquired properties after deducting the related expenses and the financing cost. Bank Albilad is considered as a related party where Albilad capital is the custodian of Mulkia Gulf Real Estate REIT Fund. This agreement is subject to the limits of borrowing mentioned in the fund terms and conditions and the Real Estate Investment Funds Regulations (REITs).