Derayah Financial, the fund manager of Derayah REIT, announces the signing of a binding agreement on 16/07/2018G to acquire the real estate building of Education & Skills International School in Riyadh for a total consideration of SAR 41.17 million. The expected timeframe to complete the transfer of the Property is 30 days, extendable by mutual consent.
The Property is located in the governorate of Diriyah, Northeast of Riyadh and on King Khaled Rd. The Property is an educational facility composed of ground floor, first floor, rooftop and basement. The Property’s total built-up area is 11,000 sqm built on a land area of 5,600 sqm. The Property was completed in 2016G.
The Property is entirely leased to a master tenant, not related to the seller of the Property, with an annual rent payment of SAR 3,500,000 for 25 years commencing on August 2016G.
It is expected that ownership of the Property will be transferred within 30 days from signing the binding agreement, extendable by mutual consent. The acquisition will be financed through the 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.