Wasatah Capital, the financial brokerage firm managing Al-Azizia REIT, announced a significant financial achievement: the collection of SAR 1,478,673.75 in outstanding receivables. These receivables were owed to Eskan for Development and Investment, a former tenant of one of the fund's properties, and cover the period of 2018 and 2019.
This collection is the culmination of diligent efforts and continuous follow-up by the fund's management, which worked to guarantee the rights of unit holders and protect the fund's assets. In an official statement published on the Saudi Stock Exchange (Tadawul), Wasata Capital confirmed that with this action, the outstanding dues file with Eskan Company has been completely closed, and the former tenant no longer has any outstanding financial obligations to the fund.
The general context of REITs in the Kingdom
Real Estate Investment Trusts (REITs) are a relatively new investment vehicle in the Saudi financial market. They were launched to provide individual and institutional investors with the opportunity to invest in a diversified portfolio of income-generating properties, such as commercial complexes, residential buildings, and offices, without the need to purchase these properties directly. These funds are regulated by the Capital Market Authority, ensuring a high degree of transparency and governance, and enhancing investor confidence.
The importance of the event and its expected impact
Domestically, Al-Azizia REIT’s success in collecting these overdue debts is a strong indicator of the efficiency and effectiveness of the fund’s executive management and its ability to handle operational and financial challenges. This collected amount is expected to have a direct and positive impact on the fund’s financial position by enhancing its available cash flow, which may support the fund’s ability to distribute future cash dividends to unit holders.
Regionally and internationally, such developments contribute to solidifying the reputation of the Saudi financial market as a mature and reliable investment environment, boasting robust regulatory and legal frameworks capable of protecting investors' rights. They also send a reassuring message to foreign investors interested in the Saudi real estate sector, which is experiencing rapid growth under the Kingdom's Vision 2030, and underscore the existence of effective mechanisms for resolving commercial disputes and collecting debts.
The fund manager affirmed his commitment to the principle of transparency, noting that any future material developments, if any, will be disclosed in accordance with the regulations and instructions in force in the financial market.
