Riyadh – Mubasher: Saudi Arabia’s Derayah Financial on Thursday has said that Derayah REIT Fund acquired a property at a value of SAR 196 million ($52.23 million).
The transaction was financed through loans which were secured by the fund, according to a statement to the Saudi Stock Exchange (Tadawul).
The acquired property is located in Riyadh's Al-Sully district, with a built-up area of 96,800 square metres, and a land area of 214,600 square metres.
Jadeer Property Management Company will lease the asset for five years, Derayah added.
“A guarantor agreement will be in place to enhance the strength of the lease agreement, the property is already sub-leased to different tenants, [and] the annual rent of the property will be SAR 18.23 million,” the statement added.
The transaction’s financial impact is forecast to appear in the fund’s financial results of the first half of 2019.
Derayah REIT Fund’s stock inched up 0.12% to close Thursday’s trading session at SAR 8.07 on Tadawul.
