Jabal Omar, Alinma Investment sign MOU to set up real estate fund

Jabal Omar Development Co. has signed a five-month memorandum of understanding (MoU) with Alinma Investment to establish a fund that would sell and lease back real estate assets.

Under the MoU, the fund will acquire income-generating operating assets, which are located in the first phase of Jabal Omar’s Makkah development project, the Saudi-based developer said in a statement to Tadawul.

If a deal for the new fund is reached, Alinma will re-lease the assets to Jabal Omar, which will retain its right to re-purchase them after five years from the fund’s ten-year term.

The developer added that it expects a positive financial impact to show on the second-quarter figures during the next fiscal year ending in September 2017.
It will be a positive impact on shareholders’ equity and the financial impact of this sale is expected to be shown during the second fiscal quarter of the year 1438 AH, and that will be after the completion of the establishment of the fund and the completion of the acquisition of the assets by the Development Investment Company.
Any developments will be announced later in this regard, with the knowledge that there are no related parties to this Convention.