Al Ahli REIT Fund (1) buys Jeddah office tower for SAR 225 mln

Al Ahli REIT Fund (1) has concluded a purchase agreement to acquire an office tower in Jeddah for SAR 255 million, NCB Capital, the fund manager, said in a bourse statement on Thursday.

The ownership transfer process is expected to be complete within 30 days from the date of signing the purchase agreement.

The deal will be financed through the fund's bank facilities.

"It is expected that the financial impact of this transaction will be generally positive on the financial results of the fund starting from the second half of 2019," NCB Capital added.

The office tower will be leased to the seller as principal tenant with an annual gross yield of 9 percent for five years starting from the date of transferring the title deed to the fund.