Derayah Financial Announces a Material Event Regarding Derayah REIT

Derayah REIT has signed a SR 600 million shariah-compliant financing facility agreement with Riyadh Bank. The Fund Manager announced that SR 250 million of the financing facility would be repaid at the end of the sixth anniversary of obtaining the financing and the remaining SR 350 million would be repaid at the end of the seventh anniversary. The Fund Manager said that the financing rate would be paid semi annually in arrears starting from the date of the first drawdown. The Fund Manager said that the objective of these facilities was to acquire new income producing real estate assets for the fund in-line with the Fund’s diversification strategy in terms of location and sector. The Fund Manager had also added that the new acquisition would increase the net cash distribution to unitholders. Previously the fund manager had announced on March 27th 2018 that the Fund had signed a memorandum of understanding with Riyadh Bank for the same purpose.