SEDCO Capital REIT Fund has signed an agreement to acquire an income generating property in Al Khobar for SAR 345 million, the fund manager SEDCO Capital said in a bourse statement.
The deal will be financed from the available bank facilities where 80 percent of the amount or SAR 276 million is to be paid on ownership transfer while the remaining 20 percent or SAR 69 million will be paid when the property’s finishing work and agreed upon terms are complete.
The legal and regulatory procedures required to transfer the ownership are expected to be completed within 30 days from the agreement signing date.
The transaction will have a positive impact that will be reflected on REIT’s financial results for Q1 2019, the statement added.
|
Property Details |
|
|
Property |
Ajdan Walk |
|
City |
Al Khobar |
|
Sector |
Entertainment/offices |
|
Acquisition value |
SAR 345 mln |
|
Annual rent |
SAR 25 mln (7.25% of acquisition value) |
|
Rent term |
10 yrs from Jan. 1, 2019 (6 yrs are binding) |
|
Tenant |
AlOula Real Estate Development Co. |
|
Payment of acquisition value |
80 % or SAR 276 million is to be paid on ownership transfer while the remaining 20% or SAR 69 million will be paid when the property’s finishing work and agreed upon terms are complete. |
|
Location |
Prince Turki Street |
|
Annual rent increment |
5% starting from the 6th year |
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