Derayah REIT leases educational property in Diriyah

Logo of Derayah REIT Fund

Derayah Financial Co., the manager of Derayah REIT Fund, announced leasing the educational property (school) in Al-Diriyah Governorate, which is owned by the fund.

The lease term is 25 years with an annual rent of SAR 4 million, with a 7.5% rent increase every five years.

In a statement to Tadawul, the fund manager said that the move comes after the termination of the lease agreement with the previous tenant based on a court ruling on Oct. 6, 2023, which led to the lease termination and property eviction, as previously announced.

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The fund manager collected outstanding dues of SAR 5 million from the previous tenant and is currently pursuing the collection of the remaining dues.

Derayah Financial expects the related impact to be generally positive, which will be reflected in the fund's results in H2 2024.

Last October, Derayah Financial said a court ruling related to an educational property (school) in the Diriyah Governorate was issued, ordering the tenant to terminate the lease contract and vacate the property, data available with Argaam showed.