Derayah REIT settles agreement with Diriyah property tenant for SAR 4.5M

Logo of Derayah REIT Fund

Derayah Financial, the fund manager of the Derayah REIT Fund, reached a settlement agreement with the former tenant of the educational property (school) located in Diriyah Governorate.

According to a statement on Tadawul, the agreement ended all disputes between the two parties. Diriyah tenant will pay a total of SAR 4.5 million as part of the settlement.

For more news on listed companies

The company further disclosed that this settlement comes on top of a previous SAR 6 million payment made to resolve the dispute.

The property’s debt will be written off, and the provision for doubtful debts, amounting to SAR 8.4 million, will be closed, the statement added.

In October 2023, Derayah Financial had announced that a court ruling was issued requiring the tenant to terminate the lease contract and vacate the educational property in Diriyah, which is owned by the fund, according to available data from Argaam.