‎First Avenue signs non-binding LoI to establish REIT Fund

First Avenue for Real Estate Development Co.signed, on Dec. 31, a non-binding letter of intent (LoI) with AWJ Real Estate Development and Investment Co. to establish a real estate fund.

The fund intends to purchase and develop commercial, office, and hotel projects, the company said in a statement to Tadawul.

Advertisement

The fund plans to invest in four real estate assets: West La Perle, East La Perle, La Perle Residential Land and La Perle Hotel Land.

First Avenue is expected to own between 40% and 50% of the fund, while AWJ’s ownership is projected to be between 50% and 60% of the fund.

The one-month LoI commenced on the signing date. Its purpose is to enhance cooperation between the concerned parties and establish a joint ownership structure that facilitates the targeted growth for both entities.

The statement noted that the letter of intent included standard provisions such as exclusivity during the negotiation period and confidentiality. This indicates that the fund’s structure and terms are still under discussion.

First Avenue will announce any developments in due course, including when the acquisition agreements are signed, and the fund is established.

First Avenue for Real Estate Development Co.signed, on Dec. 31, a non-binding letter of intent (LoI) with AWJ Real Estate Development and Investment Co. to establish a real estate fund.

The fund intends to purchase and develop commercial, office, and hotel projects, the company said in a statement to Tadawul.

The fund plans to invest in four real estate assets: West La Perle, East La Perle, La Perle Residential Land and La Perle Hotel Land.

First Avenue is expected to own between 40% and 50% of the fund, while AWJ’s ownership is projected to be between 50% and 60% of the fund.

The one-month LoI commenced on the signing date. Its purpose is to enhance cooperation between the concerned parties and establish a joint ownership structure that facilitates the targeted growth for both entities.

The statement noted that the letter of intent included standard provisions such as exclusivity during the negotiation period and confidentiality. This indicates that the fund’s structure and terms are still under discussion.

First Avenue will announce any developments in due course, including when the acquisition agreements are signed, and the fund is established.