Al Rajhi Capital announces a material development to Al Rajhi REIT Fund
Al Rajhi Capital announces acquisition of a property by Al Rajhi REIT Fund
Al Rajhi Capital announces the completion of the acquisition of a property Rowad AlKhaleej International School located in Dammam by Al Rajhi REIT Fund which is part of the approved process of increasing the total value of the Fund's assets.
The transaction has been completed on Tuesday 27/04/1441H corresponding to 24/12/2019G. The purchase price is SR 244.5 million, which is partly paid through issuance of 13,605,688 in-kind units and balance in cash.
The property is located in the district of Al Zuhur in the north east of Dammam, Anas Ibn Malik Street, Kingdom of Saudi Arabia.
The subject site comprises a regular shaped piece of land measuring 20,213 sqm, with a built-up area of 25,797 sqm.
The Property is fully leased to AlKhaleej Training and Education Company, with an annual rent payment of SAR 18.94 million. The annual rent will be increased by 7.5% every five years. The lease with AlKhaleej Training and Education Company is for a term of 15 years starting from the date of title transfer i.e. 24/12/2019
This acquisition is expected to have a positive impact on Al Rajhi REIT’s financial performance going forward. Al Rajhi Capital confirms that there are no related parties in the acquisition except the source of financing is from existing debt facility from Al Rajhi Bank.
