Derayah Financial Announces the Occurrence of an Event for Derayah REIT (Signing of a purchase agreement to acquire a portfolio of logistics assets in the kingdom of Saudi Arabia)

Derayah Financial, the fund manager of Derayah REIT, announces the signing of a purchase agreement on 25/09/2019 corresponding to 26/01/1441H to acquire a portfolio of logistics assets in the Kingdom of Saudi Arabia for a total consideration of SAR54.65 million. The expected timeframe to complete the transfer of the properties is six months from the signing of the agreement, extendable by mutual consent.



Description of the Event:

The first property is located in Al-Azizia district in Riyadh and positioned of AlKharj Rd on the south of Southern Ring Rd. The Property consists of two warehouses divided into 12 sections. The Property’s built on a land area of 20,000 sqm, and the property’s total built-up area is 15,000 sqm.


The second property is located in Al-Khalidiyyah district in Dammam and positioned on King Fahad Rd. The property is a logistic complex consisting of 17 stand-alone warehouses, a street in the middle of the complex, a distribution area and an area for services. The Property is built on a land area of 28,000 sqm, and property’s total built-up area is 20,000 sqm.


The properties will be entirely leased to the seller for five years (binding) with an annual rent payment of SAR5,192,050/- for the first two years. The annual rent will be increased to SAR5,451,653 after the second year to the fifth year. The properties are sub-leased to more than ten companies with an annual rent that exceeds the agreed annual rent. The tenant will provide promissory notes covering the lease payments throughout the lease duration.


It is expected that ownership of the properties will be transferred within six months from signing the purchase agreement, extendable by mutual consent. The acquisition will be financed through the banking facilities available to Derayah REIT.



The Impact Caused by the Event:

It is expected that the result of the acquisition will be positive on Derayah REIT’s financial performance in the first quarter of 2020, upon the completion of the legal & administrative procedures of this acquisition.



Additional Information:

Derayah Financial confirms that there are no related parties in the acquisition, except what was mentioned earlier. Derayah Financial will announce any material development as and when they occur.