Riyad REIT invests SAR 45 mln to acquire office building in US

Fund manager Riyad Capital announced in a bourse filing today that Riyad REIT Fund invested SAR 45 million in an office building in the Dallas-Forth Worth Metro Area, US.

The Class A office building, which is given on a long-term lease to FedEx Corporation, serves as its headquarters.

FedEx is one of the largest logistics and delivery services companies worldwide, and ranked 47 on Fortune 500.

The office building, located in Legacy Business Park, covers a land area of 84,174 square meters with a net leasable area of 24,491 square meters.

The investment is expected to generate an average annual net yield of 8.50% to Riyad REIT unit holders over a 6-year investment period. The yield is net of all expenses, fees, and projected taxes.

Riyad REIT is likely to generate an incremental profit of more than SAR 0.015 per unit annually net of financing costs, based on the portfolio’s projections, the fund manager noted.