Derayah Financial, the fund manager of Derayah REIT, announces the acquisition and transfer of AlKhaleejiah Business Center to Derayah REIT on Thursday 21/10/1439H corresponding to 05/07/2018G after a successful completion of all legal and technical procedures. The purchase price is SR 38,000,000 which was completely funded through the available banking facilities for Derayah REIT.
The Property is located in AlRawabi District in Khobar, on Salah Al-Deen Al-Ayoubi Street, connecting King Faisal Road with King Fahad Road. The Property is composed of three showrooms in the ground floor, five office floors, and external and basement car parking. Total built-up area is 10,567 sqm on a land area of 2,187 sqm. The Property was completed in early 2017.
The Property is fully leased to an independent master tenant with an annual rent payment of SAR 3,290,000. The annual rent will be increased by five percent 5% commencing on the sixth year. The lease is binding on both parties for 10 years starting from June 30th 2017. The office space is sub-leased to a listed company in the Saudi Stock Exchange that uses AlKhaleejiah Business Center as regional building.
It is expected that the result of the acquisition will be positive on Derayah REITs financial performance in the second half of 2018.
Derayah Financial confirms that there are no related parties in the acquisition