Derayah inks MoU to buy medical center in Riyadh for SAR 22 mln

Derayah Financial, the fund manager of Derayah REIT, has signed a non-binding memorandum of understanding (MoU) with a Saudi company to acquire Raseel Medical Center in Riyadh for SAR 22 million, it said in a statement to Tadawul on Monday.

The expected timeframe to complete the transfer of the property is 30 days, extendable by mutual consent.

The property is fully leased to Raseel Medical Center,  not related to the seller of the property, for an annual rent of SAR 1.69 million.

The rent will increase by 10 percent every five years while the lease is binding on both parties for 20 years starting December 15, 2013.

The acquisition will be financed through banking facilities available to the fund, the statement said.

The property acquisition is expected to have a positive impact on Derayah REIT’s financial performance in the second half of 2018.

There are no related parties in the acquisition.