Riyadh – Mubasher: Saudi Arabia-based Mulkia Gulf real estate investment traded fund (Mulkia REIT Fund) signed a SAR 300 million ($80 million) agreement with Saudi Bank Albilad to obtain Sharia-compliant facilities on Monday, 25 December.
The facility’s Murabaha ratio amounted to 2.25% with 6-month period of SAIBOR with implementing Murabaha scheme on a semi-annual basis, according to a statement on Tuesday to the Saudi Stock Exchange (Tadawul).
The finance will last for five years, while its amount will be covered by real estate mortgages with 175% coverage margin, in addition to a promissory note.
The fund will allocate SAR 77 million of the finance to complete acquiring a 76% stake in the VIVIENDA VILLA HOTEL Villas project.
The facilities will finance the fund’s expansion plan through acquiring income-generating properties in Saudi Arabia.
The fund noted that Bank Albilad is a related party.
The fund’s value amounted to SAR 600 million at SAR 10 per unit.
