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Derayah REIT Fund acquires SAR 269m real estate assets

Derayah REIT Fund acquires SAR 269m real estate assets
The transaction will be financed through banking facilities

Riyadh – Mubasher: Derayah Financial on Thursday announced that Derayah REIT Fund has signed an agreement to acquire four logistic properties in the Kingdom at a combined value of SAR 269 million ($71.72 million).

The expected period to complete property transferring procedures is 90 days, and it may be extended upon the two parties’ approval, according to a statement to the Saudi Stock Exchange (Tadawul).

The first property is located in Riyadh and its value stands at SAR 196 million, while the second real estate asset is in Al-Khumrah district in Jeddah, it will be acquired at a value of SAR44 million.

The third property is located in Al-Khalidiyyah district in Dammam and worth SAR18 million, while the fourth is in Al-Mina district in Dammam, with an acquisition value of SAR 11 million.

“The first, second and third properties will be entirely leased to Jadeer Property Management Company … for 5 years (binding) commencing on property transfer date … while the three properties are already sub-leased to different tenants,” Derayah Financial said in a statement.

The firm further noted that the three properties’ annual renting values amount to SAR 18.23 million, SAR 4.06 million, and SAR 1.67 million, respectively.

The fourth real estate asset will be fully leased to Emdad Human Resources Company for five years with an annual rent value of SAR 1.06 million.

“It is expected that ownership of the Property will be transferred within 90 days from signing the agreement, extendable by mutual consent. The acquisition will be financed through the banking facilities available to Derayah REIT,” Derayah Financial noted.

The transaction will be financed through banking facilities which are available for the fund, while its financial impact is expected to be positive and appear during the first half of 2019.

By 12:16 pm Saudi time, Derayah REIT Fund's stock inched up 0.74% to SAR 8.13.