Al Maather REIT signs binding agreement to buy Burjeel Hospital building for AED 100 mln

Logo of Al Maather REIT Fund

Osool and Bakheet Investment Co., the fund manager of Al Maather REIT Fund, signed a binding purchase agreement with Al Yousuf LLC to acquire Burjeel Hospital building in Sharjah, UAE, for AED 100 million inclusive of all expenses except for value-added tax (VAT).

The signing comes after completing the procedures for evaluating the property and technical due diligence inspection, the fund manager said in a statement to Tadawul today, Dec. 20.

The building is leased to VPS Healthcare LLC, a reputed Abu-Dhabi based healthcare service provider. The building is rented for AED 8 million, subject to increment every five years by AED 500,000, with a total rent period of 20 years.

The transaction will be financed through a Shariah-compliant credit facility available to the fund, the statement said, adding the deal includes the real estate asset but excludes any medical equipment.

There is no related party or conflict of interest in this transaction. The transaction is subject to the accomplishment of government registration and approval.

The deal will reflect a positive impact as it will add diversity to the fund's assets, as well as geographical diversification. In addition, the fund will achieve a positive return due to the difference between the rent yield achieved and the financing cost as well as expenses.

In October, the Saudi-listed fund signed a non-binding memorandum of understanding (MoU) to acquire the Burjeel Hospital building in Sharjah. In December, the fund manager announced an extension to the non-binding MoU.

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