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Saudi Arabia’s Jadwa REIT doubles its portfolio in Makkah

Saudi Arabia - December 26, 2017
Jadwa REIT

Jadwa REIT Al Haramain, the Saudi Arabia-based fund, has acquired two properties in Makkah, doubling its portfolio.

The real estate trust fund, managed by the investment management and advisory firm Jadwa Investment, has bought the two properties for a combined value of 148 million riyals.

The first property is a hospitality property close to the Grand Mosque in Makkah, used primarily for Haj and Umrah pilgrims, for 125 million riyals, the money will be financed through an existing Islamic debt facility.

The property is currently leased for eight million riyals and carries an initial acquisition yield of 6.6 %.

The other property the fund has acquired is a retail property, which is also in close proximity to the Grand Mosque. This one was bought for 23 million riyals, it offers an initial acquisition yield of 6.7 %.

Put together, the combined 148 million riyal investment doubles the fund’s portfolio.

“The acquisitions are a continuation of Jadwa REIT Al Haramain’s strategy to create value to its unit-holders by expanding its real estate portfolio into value add assets that benefits from the strong fundamentals of the two holy cities,” the fund said in a statement on Saudi stock exchange (Tadawul) where it is listed.

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