20 Sep, 2020
With reference to Musharaka Capital’s announcement on May 10th, 2020, the company is pleased to announce that it has completed the legal and regulatory procedures concerning acquiring one of the largest self-storage warehouses in the entire Middle East. Musharaka Capital has already received the title-deed for its newly SR 47,000,000 million Dubai-based property which was financed by a sharia- compliant credit facility.
Furthermore, Musharaka Capital signed a new lease agreement with The Box Self Storage for 25 years commencing on October 1, 2020 for AED 4,000,000 million per annum with 10% rental increment every 5 years. The lease agreement is irrevocable for the entire 25 years and extended for another 5 years. Lease payments are guaranteed by bank cheques.
Musharaka Capital appointed Hussain Lotah Law Firm, as the transaction’s legal advisor. Also, the company used other international service providers including real estate agents and accounting firms in conducting a rigorous and sober due diligence on the property.
The fund manager emphasizes that the transaction would have positive impact on Musharaka REIT’s results. It will help enhance the fund’s income and reduce any future volatility in the revenue stream. Also, the property’s long tenancy will help generating sustainable future cash flow for unit holders