Derayah Financial Announces Material Development Relating to Derayah REIT
Derayah Financial, the fund manager of Derayah REIT, announces the acquisition and transfer of a logistic real estate asset in Riyadh on Thursday 07/03/1440H corresponding to 15/11/2018G after a successful completion of the legal and technical procedures. The purchase price is SR196 million which was funded through the available banking facility for Derayah REIT.
The property is located in Al-Sully district in Riyadh, and positioned on the north of the Southern Ring Rd. and east of Istanbul St. The property is a logistic complex consisting of 12 stand-alone warehouses of different sizes within an enclosed perimeter. The property’s total built-up area is 96,800 sqm, and built on a land area of 214,600 sqm.
The property will be 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. The annual rent of the property will be SR 18,230,000.
It is expected that the result of the acquisition will be positive on Derayah REIT’s financial performance in first half 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, and the fund manager expects to complete the transfer of the remaining real estate assets in this transaction within 30 days.
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.