Riyadh – Mubasher: Riyad REIT Fund on Tuesday announced acquiring an office tower in AlSahafa district, Riyadh at a value of SAR 65 million.

The transaction was financed by a sharia-compliant loan, according to a statement to the Saudi Stock Exchange (Tadawul).

“The property is newly developed and is fully leased to a non-related party (Thiqah Business Services) for SAR 6.50 million, [while the takeover] carries an initial acquisition yield of 10%,” the statement added.

The facility, which is leased for five years, covers an area of 2,555 square metres.

The deal is part of Riyad REIT Fund’s plans for implementing major expansion and diversifying real estate assets. 

The fund is owned by Riyad Capital company.

Riyad REIT Fund’s stock levelled down 0.52% to close Tuesday’s trading session at SAR 7.70.