Al Rajhi Capital announces acquisition of a 2 properties by Al Rajhi REIT Fund
Al Rajhi Capital announces the completion of the acquisition of a 2 properties. i.e 1) Rowad AlKhaleej International School
located in Riyadh and 2) Baraem Rowad Al Khaleej Kindergarten located in Riyadh by Al Rajhi REIT Fund which is part of
the approved process of increasing the total value of the Fund's assets.
1. Rowad AlKhaleej International School located in Riyadh
The transaction has been completed on Wednesday 28/04/1441H corresponding to 25/12/2019G. The purchase price of Rowad AlKhaleej International School is SR 210 million. The purchase price is partly paid through issuance of 11,685,867 in-kind units and balance by cash.
The property is located in the district of Al Mogarazat in Riyadh, on Prince Muqurin Ibn Abdulaziz Street, Kingdom of Saudi Arabia.
The subject site comprises a regular shaped piece of land measuring 15,959.90 sqm, with a total built-up area of 39,028 sqm.
The Property is fully leased to AlKhaleej Training and Education Company, with an annual rent payment of SAR
16.275 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. 25/12/2019
2. Baraem Rowad Al Khaleej Kindergarten located in Riyadh The transaction has been completed on Wednesday 28/04/1441H corresponding to 25/12/2019G The purchase price of Baraem Rowad Al Khaleej Kindergarten is SR 20 million. The purchase price is partly paid through issuance of 1,112,939 in-kind units and balance by cashThe property is located in the Sahafa District, Prince Abdullah Bin Saud Bin Abdullah Sneatan Al Saud Street in Al Riyadh, Kingdom of Saudi Arabia.
The subject site comprises a regular shaped piece of land measuring 1,830 sqm, with a built-up area of 2,549 sqm.
The Property is fully leased to AlKhaleej Training and Education Company, with an annual rent payment of SAR 1.55 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. 25/12/2019
Impact of the event: 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.
