Alinma Retail REIT signs deal to acquire 2 properties in Riyadh

Logo of Alinma Investment Co.

Alinma Investment Co., the fund manager of Alinma Retail REIT Fund, signed an agreement today, March 13, with Osus Real Estate Co. to acquire two new real estate properties in exchange for an in-kind portion represented by Al Makan Mall in Riyadh and a cash portion financed through credit facilities, according to a statement to Tadawul.

The value of the assets subject to the deal is expected to exceed SAR 1 billion.

The fund manager said that the deal aims to boost its cash flows by achieving optimal use of assets and acquiring new assets using credit facilities.

It added that the decision was taken after studying market data and analyzing the performance of Al Makan Mall in Riyadh over the last period, where the net returns for 2023 amounted to SAR 14 million.

The new properties are distinguished by their strategic location in the north of Riyadh.

They have been newly developed and are intended to be rented to one tenant for each property, which facilitates the collection process and reduces operational costs.

The returns on the new assets are expected to exceed SAR 50 million annually, the statement added.

The agreement includes the right of cancellation for all parties in the event of specific conditions within 90 calendar days from the date of the agreement.

The fund manager said that the related financial impact will be generally positive on the fund’s results in the coming period.