Bonyan REIT finalizes ownership transfer for SAR 225M office tower in Riyadh

Logo of Bonyan REIT Fund

Saudi Fransi Capital Co., the fund manager of Bonyan REIT Fund, announced that the latter finalized the ownership transfer for an office tower in Al Sahafa District, Riyadh, according to a Tadawul filing.

This came following the completion of the property’s development works and the issuance of its occupancy certificate, it added.

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The asset’s acquisition value is SAR 225 million, excluding the real estate transaction tax and brokerage fees. The purchase was financed through obtaining Shariah-compliant credit facilities.

The 23-storey building covers a built-up area of 20,955 square meters, Saudi Fransi Capital pointed out, expecting this development to have a positive impact on the fund’s profitability.

Details of the asset’s lease agreement will be announced upon its signing, the fund manager confirmed.

In March, the fund signed a sale and purchase agreement (SPA) for an under-construction office tower in Al Sahafa District, Riyadh, according to data available to Argaam.