Al Ahli REIT (1) acquires SAR 250 mln office complex in Riyadh

Al Ahli REIT (1) Fund has signed a contract, on Tuesday, to acquire a commercial office complex in Riyadh for SAR 250 million for leasing purposes, NCB Capital (NCBC), the fund manager, said in a bourse statement.

The time period to complete the process of transferring the title deed is before the end of 2019.

The complex will be leased with an annual yield of 8.6 percent for a period of three years, renewable thereafter.

The transaction will be financed through a bank facility available to the fund, according to the announcement made on November 07, 2018.

The financial impact of this transaction is expected to be generally positive on the fund's results, starting from the first quarter of the fiscal year 2020, the statement added.

Last November, Al Ahli REIT (1) obtained a SAR 650 million Shariah-compliant Ijara facility from the National Commercial Bank (NCB), Argaam reported.