Riyad Capital Announces the completion of a property acquisition in Riyadh by RIYAD REIT on 19/03/2019. Details are as follows:
- Office tower located in AlSahafa district on Olaya street in Riyadh on a land size of 2,555 square meters.
- The property was acquired at 65 million Saudi Riyals and was financed through Shariah-compliant bank debt.
- The property is newly developed and is fully leased to a non-related party (Thiqah Business Services) for 6,500,000 Saudi Riyals. The acquisition carries an initial acquisition yield of 10%.
- The property was leased on 17/09/2018 for 5 years lease term ending on 16/09/2023.
- The Property was purchased from non-related party, and without any conditions.
This acquisition is a continuation of Riyad REIT strategy to expand and diversify its real estate portfolio through the acquisition of high quality properties located in strategic locations, with long term leases.The fund manager expects that the results will be positive on Riyad REIT’s financial performance.