Al Rajhi REIT Fund inks contract to lease 2 properties for SAR 21.7 mln annually

Logo of Al Rajhi REIT Fund

Al Rajhi REIT Fund  signed today, May 10, a new master-lease agreement for Blue Tower in Yarmouk District, Al Khobar, and Luluah Warehouses in Riyadh, the fund manager Al Rajhi Capital said in a statement to Tadawul.

Under the agreement, Nofodh Real Estate Investment Co. leased both assets, as follows:

Blue Tower: Rental income of SAR 12.33 million for each year, excluding VAT, with an increase of 7% in the third year. The agreement will be effective for five years, starting March 11, 2023.

Luluah Warehouses: Rental income of SAR 9.38 million for each year, excluding VAT, with an increase of 7% in the third year. The agreement will be effective for five years, starting March 6, 2023.

The tenant is Nofodh Real Estate and the previous tenant was Rawaj Real Estate Co., and both are subsidiaries of Mosa bin Abdul-Aziz Al-Mosa and Sons Real Estate Holding Co.

The lessee is not a related party, the company said.

The relevant effect is positive as the signing of the new agreement ensures the continuity of 100% property occupancy at the same level of previous years' income with a contractual increase and good covenant tenant.