Derayah REIT gets preliminary court ruling on dismissal of lawsuit filed by Smart Tower tenant

Logo of Derayah REIT Fund

Derayah REIT Fund’s manager, Derayah Financial, received a notice from the former’s legal counsel, Naif Alsalem Law Boutique, regarding a lawsuit filed by the current tenant of Smart Tower against the fund.

The Riyadh General Court’s First Large Claims Division issued a preliminary ruling dismissing the case, according to a Tadawul filing today, Jan. 20.

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The ruling is preliminary and subject to appeal. It added that the decision has no financial or operational impact, noting that any material developments will be disclosed in due course.

Derayah Financial announced in November 2024 that the tenant of Derayah REIT’s Smart Tower had filed a lawsuit against the latter. The tenant sought to annul the purchase agreement for Smart Tower, signed on Aug. 7, 2017, according to Argaam’s data.

In September 2024, Derayah Financial initiated legal action against the primary tenant to recover SAR 40 million in overdue rent.

Smart Tower is a mixed-use property in Riyadh’s Al Olaya District, located at the intersection of King Fahd Road and Prince Mohammed bin Abdulaziz Road.

The asset spans 3,910 square meters and includes eight floors of office spaces and four ground-level retail units.

As per the latest terms and conditions prospectus, the property is leased at SAR 20 million annually under a 10-year agreement.

It represents approximately 17% of Derayah REIT’s portfolio, based on the fund’s latest annual report.