SNB Capital Company Announces the Occurrence of Specific Event to AlAhli REIT Fund 1
Pursuant to the company’s announcement published on 24 Rabi’ Al-Awwal 1442H corresponding to 10 November 2020 related to the completion of acquisition of the land adjacent to Al-Andalus Mall with the objective of developing and expanding the Mall, the Fund Manager announces the Fund board approval to appoint Al-Andalus Property Company, a related party (Al-Andalus Property Company owns 68.72% of the Fund’s units), as the developer to expand Alandalus Mall and increase parking spaces, which will add, according to the project business study, around 15,000 m2 of additional Gross Leasable Area.
The estimated cost of project development is SR 131 Million. The fee payable to the Al-Andalus Property Company will be 10% of the development cost, capped at SR 11.5 Million. The terms of the contract were set on arm’s length basis.
The period expected to complete the development work is 130 weeks staring from the date of contract. The project, upon completion, is expected to have a positive impact on Al-Andalus Mall and the Fund.
The project is expected to have a positive impact on Al-Andalus Mall and the Fund.