Derayah Financial, the fund manager of Derayah REIT, announces the signing of a non-binding memorandum of understanding with a leading Saudi-based company to acquire the property Raseel Medical Center in Riyadh for a total consideration of SAR 22 million. The expected timeframe to complete the transfer of the Property is 30 days, extendable by mutual consent.
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 transfer of the Property’s ownership will take place within 30 days from the announcement, extendable by mutual consent. The acquisition will be financed through banking facilities available to Derayah REIT.
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.