Derayah acquires medical centre building in Riyadh for SAR 22 mln

Derayah Financial, the fund manager of Derayah REIT, has acquired Raseel Medical Center building in Riyadh for SAR 22 million, it said in a statement to Tadawul on Thursday.

The purchase was finalized after successful completion of all legal and technical procedures, the fund manager said, adding the deal was completely funded through the available banking facilities for Derayah REIT.

The property, which is built on a total area of 2,500 square meters and developed in early 2013, is leased at an annual value of SAR 1.69 million to Raseel Medical Center.

The lease is binding on both parties for 20 years starting, Dec.15, 2013, with the rent increasing 10 percent every five years.

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

There are no related parties in the acquisition, it added.