Alkhabeer REIT restructures over SAR 1B facilities with Al Rajhi Bank

Logo of Alkhabeer REIT Fund

Alkhabeer REIT Fund renewed and restructured SAR 1.03 billion worth of facilities with Al Rajhi Bank, Alkhabeer Capital, the fund manager, said in a statement to Tadawul.

The fund's current total funding is SAR 737.5 million as on December 31 2022, said the fund manager, adding that the principal is due at varying intervals in the years 2024 and 2025.

The key terms of the financing agreement is as follows: reducing the profit margin by not less than 30% compared to the financing previously granted to the fund, extending the maturity date of the total financing to September 2031, and continuing to benefit from the profit rate hedging that have been previously concluded until its termination date, according to the fund manager.

The fund manager also expected that the resulting impact to be generally positive on the fund performance, due to reduced profit margin, and increased possibility of acquiring new real estate assets by accessing the unutilized amount of the bank facility.