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 Al Salam NMC Hospital by Al Rajhi REIT Fund.
The transaction has been completed on Thursday 10/03/1441H corresponding to 07/11/2019G. The purchase price is SR 163.77 million, which is funded through the available shariah compliant debt facility for Al Rajhi REIT.
Al Salam NMC Hospital is a 100 bed multispecialty hospital. The key specialties are Obstetrics & Gynecology, Pediatrics, Internal diseases, ENT Dept. & General Surgery. It is an independent building consisting of two ground floors + 6 upper floors.
The Property is fully leased to Al Salam Medical Group, with an annual rent payment of SAR 11.64 million. The annual rent will be increased by 5 % (five percent) every five years. The current lease with Al Salam NMC Hospital is for a term of 15.75 years starting from 1 April 2018 & the lease agreement is been assigned to Al Rajhi REIT Fund.
The property also has an additional income of SAR 70,000 from leasing of optical shop and coffee shop within the premises of hospital. The lease for both these shops has same escalations and term as that of hospital.
Therefore the total annual income from the property currently is SAR 11.71 Million
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.
The acquisition of the property is part of the process of increasing the total value of the Fund's assets and has been funded entirely through the available shariah compliant debt facility for Al Rajhi REIT
