Derayah REIT acquires commercial building for SAR 45 mln

Derayah REIT has acquired a commercial building in Jeddah for SAR 45 million, the fund manager Derayah Financial said in a statement to Tadawul on Thursday.

The ownership transfer and other legal procedures will be finalized within 30 days from the signing date.

The property, built on a total area of 2,700 square meters and developed in 2014, was evaluated by two assessors at an average of SAR 69.25 million. It will be fully leased for ten years at an annual value of SAR 3.83 million.

The lease value will be raised to SAR 4.05 million starting from the sixth year.

The deal will be financed from bank facilities.

The acquisition is expected to have a positive impact on Derayah REIT’s financial performance in Q4 2018, the statement said.

There are no related parties in the acquisition, it added.