Riyadh – Mubasher: Al Ma’athar REIT has signed a deal to acquire Towlan Hotel Suites in the Saudi city of Al Khobar.

The transaction’s total cost amounted to SAR 22 million, according to the fund’s recent statement to the Saudi Stock Exchange (Tadawul).

The acquisition will be financed via a sharia-compliant financing facility.

The seller will rent the 6,276 square-metre hotel for an annual rent of SAR 2.31 million through a ten-year binding agreement starting from the purchase date, the statement added.

The seller will also provide promissory notes throughout the whole rental period.

The fund noted that the deal is expected to have a positive impact on its financials after transferring the property’s ownership.