Mulkia Gulf REIT signs pact to buy Elite Mall for SAR 202 mln

Mulkia Gulf Real Estate REIT Fund signed a purchase agreement on August 8, 2019, to acquire Elite Mall building in Riyadh for SAR 201.5 million, fund manager Mulkia Investment said in a bourse statement on Sunday.

The property is fully leased for five years and has a net income of SAR 16 million per year, starting from the date of transfer of ownership, it added.

The asset acquisition will be completed by increasing the fund’s size by nearly SAR 80.6 million at a price of SAR 9.94 per unit, representing 40 percent of the value of the property. The remaining value will be paid by financing after obtaining the necessary approvals, the statement added.

The seller is not a related party, according to the fund manager.