Announcement from Musharaka Capital Company regarding a development occurring on Musharaka REIT Fund
Musharaka Capital Company as the manager of “Musharaka REIT Fund” announces that due to the ongoing government precautionary procedures to reduce the spread of the Corona Virus (COVID-19) by suspending some activities, closing commercial complexes and preventing curfews for 24 hours, we appreciates the efforts of the Kingdom of Saudi Arabia to confront the current crisis that swept the world. Therefore, Musharaka Capital Company would like to clarify that the majority of the Fund’s property wasn’t materially affected and are leased by long and binding lease contracts, unlike some commercial and retail properties where the impact was greater. Nevertheless, the hypermarket and restaurants in the fund’s commercial complexes are contributing to reducing the burden on communities and residents in the cities (Riyadh, Dammam, Jubail, Al-Kharj) by offering groceries and food home deliveries.
Musharaka Capital also wishes to inform unit holders that it has recently received requests from some tenants regarding suspending or reducing the rent for properties that constitute less than 20% of the fund’s revenues - this does not mean that the revenues will be affected by this percentage - knowing that a number of requests have been rejected and the fund manager will study other requests, consider available and appropriate options in all aspects, and decide on them in accordance with the laws in the Kingdom of Saudi Arabia, which will protect the interest of unit holders. It should be noted that if the tight precautionary measures period continues beyond the first half of the current year, the impact on the Musharaka REIT Fund revenues may increase.
Because the current crisis "Covid-19" is still ongoing, it’s difficult to predict its ending or determine the negative impact on the fund, however, the fund manager always confirms that the priority is for the protection of unit holders interest and the fund manager will continues to monitor the situation and accordingly take the necessary decisions to ensure continued success of the fund’s operations. Any major event that may have a material impact on the fund’s operations will be announced on a timely basis.