Riyad REIT buys SAR 184.4 mln office property in Riyadh

Logo of Riyad REIT Fund

Riyad REIT Fund acquired an office building worth SAR 184.37 million in Riyadh, which implies an initial acquisition yield of 8%, fund manager Riyad Capital said in a bourse filing today, Aug. 24.

The property was financed by a Shariah-compliant bank debt, it added.

Located in Al Raed district on King Abdullah Road in Riyadh, the property has a built-up area of 26,520 square meters (sqm).

It is newly developed and on triple net (NNN) lease for three years to a government-related entity, which is extendable.

It was purchased without related parties, and without any conditions, the statement said.

The financial impact of the transaction is expected to be generally positive on the fund's results, by the end of H2 2021, the statement noted.

The acquisition is a continuation of Riyad Capital’s strategy to continue expanding and diversifying the REIT’s real estate portfolio – both locally and internationally – through the acquisition of high-quality properties located in strategic locations and leased to credit-worthy tenants.

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