Mulkia Gulf Real Estate REIT gets SAR 300 mln loan from Bank Albilad

Mulkia Gulf Real Estate Fund signed on Monday an agreement with Bank Albilad to obtain SAR 300 million Shariah compliant facilities with a Murabaha rate of 2.5 percent + SAIBOR 6 months with the implementation of the Murabaha mechanism semi-annually.

The funding duration is five years while the amount is covered by real estate mortgages with a coverage margin of 175 percent plus a payment order, the REIT said in a bourse statement.

The facilities aims to finance the expansion plan of the Mulkia Gulf Real Estate REIT through the acquisition of income-generating properties within the Kingdom of Saudi Arabia, in line with the Fund's investment strategy to maximize the returns and cash dividends through the difference between the income of new properties and the cost of financing, the statement added.

About SAR 77 million of the value of the financing will be used to complete the acquisition of a 76 percent stake in the VIVIENDA VILLA HOTEL Villas project.

Mulkia added that Bank Albilad is a related party whereby Al Bilad Capital is also considered a custodian of the REIT.