Derayah Financial Announces Material Development Relating to Derayah REIT (The Acquisition and Transfer of 3Labor Housing Buildings in Dammam)
Derayah Financial, the fund manager of Derayah REIT, announces the acquisition and transfer of 3 Labor Housing Buildings in Dammam on Sunday 23/04/1440H corresponding to 30/12/2018G as the legal and technical procedures were completed successfully. The purchase price is SR11 million which was funded through the available banking facilities for Derayah REIT.
The property is located in Al-Mina district in Dammam, and positioned on the east of King Faisal Rd. The property consists of 3 labor housing buildings. The property’s built-up area is 5,110 sqm and built on a land area of 2,160 sqm
The property is entirely leased to Emdad Human Resources Company, a related party to the seller, for 5 years (binding) commencing on Property transfer date. The Tenant shall provide promissory notes covering the lease payments throughout the lease duration. Additionally, a guarantor agreement will be in place to enhance the strength of the lease agreement. The property is currently used by the tenants for its requirements, and the tenant will be responsible for insurance, operational expenses and maintenance of the property during the lease term. The annual rent of the property is SR1,060,000.
It is expected that the result of the acquisition will be positive on Derayah REIT’s financial performance in first quarter of 2019.
Derayah Financial has previously announced on 23/02/1440H corresponding to 01/11/2018G the signing of a purchase agreement to acquire a portfolio of logistics real estate assets in the Kingdom of Saudi Arabia. The property that was acquired today is part of this transaction
Derayah Financial confirms that there are no related parties in the acquisition except what was mentioned above. Derayah Financial will announce any material development as and when they occur.