Al Ma'athar real estate investment
trust (REIT) has signed an Islamic facility agreement with Al Rajhi Bank worth
400 million Saudi riyals ($106.7 million), fund manager Osool & Bakheet said
in a statement on Monday.
Osool & Bakheet Investment
Company said that as a collateral it provided the Shariah-compliant bank with a
promissory note and mortgage pledge on properties.
The facility will be used to finance
the expansion plans of the fund through new acquisitions.
The Islamic facility is for five
years and the profit rate, which was not disclosed, will be paid on a
Shariah-compliant Al Ma'athar REIT
posted an operating profit of 21.41 million riyals for the first six months of
Its net asset
value was 587.7 million riyals as at the end of June this year.
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