Mulkia Gulf Real Estate REIT Fund announces the signing of an agreement to obtain Sharia compliant banking facilities with Bank Albilad as follows:
1. The signing of the agreement was completed on 25 December 2017.
2. The financing value is SR 300 million, with a Murabaha rate of 2.5% + SAIBOR 6 months with the implementation of the Murabaha mechanism semi-annually.
3. The duration of funding is 5 years.
4. SAR77 million of the value of the financing will be used to complete the acquisition of a 76% stake in the VIVIENDA VILLA HOTEL Villas project, following the announcement of the MULKIA Gulf Real Estate Property Fund, published on 30/11/2017 on Tadawul website.
5. Financing is provided by guaranteeing real estate mortgages with a coverage margin of 175% plus a payment order.
6. The Fund aims to finance the expansion plan of the Mulkia Gulf Real Estate REIT Fund through the acquisition of income-generating properties within the Kingdom of Saudi Arabia in line with the Fund’s investment strategy to maximize the returns of the Fund and cash dividends through the difference between the income of new properties and the cost of financing.
7. Bank Albilad is a related party to the fund whereby Al Bilad Capital is also considered a custodian of Gulf REIT.