Riyad REIT set to acquire SAR 1 bln assets after capital hike: Chairman

10/04/2018 Argaam

 

Riyad REIT’s capital hike is aimed at acquiring three new assets worth over SAR 1 billion and paying SAR 150 million out of SAR 200 million in short-term Murabaha facilities, the fund’s chairman, Adel Ateeq, told CNBC Arabia on Monday.

 

The target properties include Kempinski Hotel and an educational building in Riyadh, which are valued at SAR 600 million and SAR 150 million, respectively.

 

The third asset is a commercial building worth over SAR 150 million in Jeddah.

 

When the deal is completed, Riyad REIT will secure long-term facilities at lower interest rates to boost its returns.

 

The fund operates in Riyadh, Jeddah, Dammam and Khobar and is eying expansions in other cities and sectors across the Kingdom, Ateeq said, adding: “We expect the fund to maintain growth and biannual dividends, ahead of increasing those dividends going forward.”

 

Riyad REIT Fund’s capital hike subscription period started on April 1 and will continue until Thursday April 12, Argaam reported.

 

Riyad Capital, the fund manager, plans to increase Riyad REIT’s capital to SAR 1.633 billion from SAR 500 million.

 

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