Musharaka Financial Company’s announcement of the occurrence of a specific event for the Musharaka REIT Fund
18 August 2022
Musharaka Financial Company, the manager of the Musharaka REIT Fund, announces the upcoming expiration of lease contracts for its key tenants at the following properties:
- Ajzala Residential Complex
- Al Lulu Residential Complex
- Radisson Blu Hotel Apartments (all expiring on August 22, 2022)
- Sea Shore Residential Complex (expiring on August 31, 2022)
The fund manager intends to self-operate these properties through specialized property management operators.
Current Occupancy Rates:
- Ajzala Residential Complex: 82%
- Sea Shore Residential Complex: 74%
- Al Lulu Residential Complex: 71%
Expected Impact:
The transition from fixed rental income to variable revenue—along with the fund bearing operational expenses—may result in changes to the properties’ income. However, the fund manager expects higher occupancy rates under self-operation due to improved efficiency and increasing demand for residential complexes.
The fund manager is committed to maintaining cash distributions to unit holders in line with the fund’s distribution policy and terms & conditions.