Derayah Financial, the fund manager of Derayah REIT, announces the acquisition and transfer of the real estate building of (Raseel Medical Center) to Derayah REIT on Thursday 19/12/1439H corresponding to 30/08/2018G after a successful completion of all legal and technical procedures. The purchase price is SR22 million which was funded through the available banking facilities for Derayah REIT
The Property is located in Al-Mansourah District in Riyadh, on Maan bin Zaedah Street, north of the Southern Ring Rd. The Property is composed of ground floor, first floor, rooftop and basement. Total built-up area is 4,566 sqm on a land area of 2,500 sqm. The Property was completed in 2013.
The Property is fully leased to Raseel Medical Center, not related to the seller of the Property, with an annual rent payment of SAR 1,690,000. The annual rent will be increased by ten percent 10% every five years. The lease is binding on both parties for 20 years starting from December 15th 2013.
It is expected that the result of the acquisition will be positive on Derayah REIT’s financial performance in the second half of 2018. Derayah Financial confirms that there are no related parties in the acquisition. Derayah Financial will announce any material development as and when they occur.