Smart Tower tenant files lawsuit against Derayah REIT

05:31 PM (Mecca time) Argaam
Logo ofDerayah REIT Fund

Logo of Derayah REIT Fund


Derayah Financial Co., the manager of the Derayah REIT Fund, received notice of a lawsuit filed by the current tenant of the Smart Tower property, seeking to nullify the purchase contract dated Aug. 7, 2017.

 

 In a statement to Tadawul, the company said it is currently unable to assess the impact of this event but will announce any material developments as soon as they become available.

 

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According to data available on Argaam, Derayah REIT began in September legal proceedings against the main tenant of the Smart Tower property to recover overdue rent of SAR 40 million.

 

The Smart Tower is a mixed-use property in Al Olaya, Riyadh, at the King Fahd and Prince Mohammed bin Abdulaziz Road intersection, on a 3,910 sqm plot. It has eight office floors and four ground-floor showrooms Khaled Abdulaziz Almuqairen and Sons Holding Co. is the main tenant, paying SAR 20 million annually for 10 years, binding on both parties. 

 

The property accounts for about 17% Derayah REIT fund's portfolio, per the latest annual report.

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