Derayah Financial, the fund manager of Derayah REIT, announces the acquisition and transfer of a logistic real estate asset in Dammam on Thursday 13/04/1440H corresponding to 20/12/2018G as the legal and technical procedures were completed successfully. The purchase price is SR18 million which was funded through the available funds for Derayah REIT.
The property is located in Al-Khalidiyyah district in Dammam, and positioned on the east of King Fahad Rd. The property consists of two warehouses. The property’s total built-up area is 10,000 sqm and built on a land area of 12,000 sqm
The property is entirely leased to Jadeer Property Management 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 already sub-leased to different tenants, and the master tenant will be responsible for insurance, operational expenses and maintenance of the property during the lease term. The annual rent of the property is SR1,670,000.
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.