Alkhabeer REIT completes B&Q property sale for SAR 87.6M

Logo of Alkhabeer REIT Fund

Alkhabeer Capital Co., the Alkhabeer REIT Fund’s manager, completed on March 28 the sale of the "B&Q" property, formerly known as the Homeworks Center, for a value of SAR 87.6 million, according to a statement to Tadawul.

The "B&Q" property is located in Riyadh's King Fahd district. The buyer bore the real estate transaction tax and brokerage fees, the statement added.

The transaction took place after the fund board initially approved the buyer's offer and the fund manager completed the required real estate valuations in accordance with fund terms and conditions.

The fund acquired the property in September 2018, achieving an average annual rental yield of 6.7% during this period, the company noted.

The sale process provides flexibility to the fund and enhances its financial position, Alkhabeer Capital added, highlighting the potential use of proceeds from the sale to repay part of the existing bank facilities, finance the acquisition of other income-generating real estate assets, or develop and enhance the performance of its existing properties.

The company expects the financial impact of this transaction to be generally positive, reflecting on the fund's proceeds during the first half of 2024.

There are no related parties to the deal, the statement added.

According to data available on Argaam, Alkhabeer REIT’s board of directors preliminarily approved, last February, the acceptance of an offer to purchase one of the fund's properties, subject to conducting the necessary real estate valuation processes before proceeding with the deal, in accordance with the fund's terms and conditions.