Derayah acquires Al-Khaleejiah building for SAR 38 mln

Derayah Financial, the fund manager of Derayah REIT, has acquired the Al-Khaleejiah Business Center for SAR 38 million, the firm said in a statement to Tadawul on Thursday. 

The purchase was finalized after successful completion of all legal and technical procedures, Derayah Financial said, adding that the deal is completely funded through the available banking facilities for Derayah REIT.

The property, which is built on a total area of 2,187 square meters and developed in early 2017, is leased at an annual value of SAR 3.3 million for an independent master tenant.

The lease is binding on both parties for 10 years starting from June 30, 2017. The rent will increase 5 percent by the sixth year.

The acquisition is expected to have a positive impact on Derayah REIT’s financial performance in the second half of 2018. There are no related parties in the acquisition, the company noted.