Bonyan REIT acquires SAR 99 mln office tower in Riyadh

Logo of Bonyan REIT Fund

Bonyan REIT Fund signed, on April 27, 2021, a sale and purchase agreement (SPA) to acquire an office tower in Riyadh, Saudi Fransi Capital, the fund manager, said in a bourse statement.  

Under the deal, the purchase price stands at SAR 99 million, which is financed by the fund’s existing loan facility.

The office tower is located in Sahafa District on Al-Olaya Street on a total land are spanning 3,330 square meters (sqm), with a total built-up area of 16,643 sqm and a total gross leasable area (GLA) of 9,260 sqm.

The property is leased to a government entity under a 3-year lease agreement with an annual rental payment of SAR 9 million, starting from August 2021.

The fund will pay a brokerage fees in respect of the acquisition. Moreover, the title deed was transferred as of April 27, while the other legal measures will be completed in due course, the fund manager added.

The financial impact of the acquisition is expected to be positive on the fund's results, Saudi Fransi Capital concluded.