Al Mashaar REIT signs MoU to acquire Riyadh office building for SAR 135 mln

Al Mashaar REIT Fund signed, on Feb. 28, 2021, a memorandum of understanding (MoU) to invest SAR 135 million in a commercial building, known as i-Offices, in Riyadh, fund manager Muscat Capital said in a statement to Tadawul.

The procedures for transferring the ownership of the real estate must be completed in 20 days from the date of signing the MoU, the statement said, adding that the period can be extended with the consent of both parties.

The property comprises three Class A income-generating commercial office towers located on Thumama Road, next to Aliya Plaza Complex, in Rabeea district.

Al Mashaar REIT intends to acquire the three towers on a fully occupied basis for SAR 135 million, while the annual total rent would be SAR 10.45 million.

The total area is 6,155 square meters (sqm), while the built up area is 23,215 sqm, with a gross leasable area of 10,700 sqm.

The property has three tenants, including Al Rajhi Takaful and Amlak International.

This acquisition is expected to be financed from the currently available Shariah-compliant loan facility signed between Riyad Bank and Al Mashaar REIT Fund, the statement added.

The financial impact of the deal is expected to be positive in general, which will be reflected on financial statements of 2021, subsequent to completing the legal and administrative procedures related to the deal, the fund manager added.