Derayah Financial Announces the Occurrence of an Event to Derayah REIT
Introduction: Derayah Financial (the “Fund Manager”) in its capacity as the Fund Manager of Derayah REIT (the “Fund”) announces Board of Director’s approval to restructure Fund’s existing financing.
Description of the Event: As per the Fund’s audited financial statements of Dec 31st 2021, Fund’s financing reached SAR748 million. The financing’s maturity is staggered in 2026 and 2027.
The Fund Manager reached an agreement with a local bank to restructure existing financing as per the following main terms:
– Reduce profit spread by approximately 20%.
– Extend the financing maturity date to seven years from financing drawdown date.
This would also require transferring the mortgage on the title deeds to the new financier.
The Impact Caused by the Event: Financing restructuring will result in reducing Fund’s financing expenses, which will have a positive impact in the second half of 2022.