The Riyadh-based investment management company Jadwa Investment Co. announced that Jadwa REIT Saudi Fund has entered into an SR1 billion ($270 million) Shariah-compliant facility arrangement with Banque Saudi Fransi to satisfy outstanding credit obligations. The remaining monies will support the investment goals of the fund, and a total of SR453.12 million will be set aside for credit dues, it added.
The agreement caused the Saudi Arabian Interbank Offered Rate (SAIBOR) profit margin for the fund to drop from over 2 percent to over 1.5 percent. Aiming to repay the entire withdrawal amount in a single payment after five years, the repayment arrangement has also been changed. Jadwa REIT Saudi Fund has net assets of SR1.74 billion and a net profit of SR41.48 million, according to the interim financial statement published for the period ending on June 30.
With a size of 161,276 square meters and a purchase price of SR400 million, the fund entered into a sale and buy agreement for leased commercial land in Jeddah on April 25. At the Saudi Capital Market Awards, which were presented at the Saudi Capital Market Forum earlier this year, Jadwa Investment was named the best asset manager for 2022.
The award was given to Tariq Al-Sudairy, managing director and CEO of Jadwa Investment, by Khalid Abdullah Al-Hussan, CEO of Saudi Tadawul Group. By providing net outperformance across its local and regional public equity programs in 2022, Jadwa achieved significant business milestones.
Additionally, the company launched foreign alternative funds and multi-asset class funds to give clients more access to a wider range of markets and asset classes.