Derayah REIT signs SAR 600 mln financing facility deal

Derayah REIT has signed a SAR 600 million Shariah-compliant financing facility agreement with Riyad Bank, fund manager Derayah Financial Corporation said in a bourse statement.

The aim of obtaining the financing facilities was to acquire new income producing real estate assets for the fund in-line with Derayah Financial Corporation’s diversification strategy, the statement said.

Nearly SAR 250 million of the financing facility would be repaid at the end of the sixth anniversary of obtaining the financing and the remaining SAR 350 million would be repaid at the end of the seventh anniversary.

The financing rate would be paid semi-annually in arrears, starting from the date of first drawdown, the statement said.

The new acquisition is also expected to increase the net cash distribution to unitholders, it added.

Derayah REIT had signed on March 27 a memorandum of understanding (MoU) with Riyad Bank to obtain SAR 600 million Shariah-compliant bank facilities.