Al Maather REIT Fund has completed the acquisition deal of Towlan Hotel Suites in Al Khobar for SAR 22 million in addition to a value-added tax (VAT) of SAR 1.1 million, the fund manager said in a bourse statement.
The fund has also signed a ten-year rent agreement for the whole property at SAR 2.31 million per year, net of any expenses, with a return of 10.5 percent.
The tenant has submitted promissory notes covering the whole rental period.
The deal is not a related party transaction, the statement added.
The acquired property is located in Al Khobar near Al Dhahran Mall with a total building area of 6,276 square meters and occupies a land area of almost 1,700 square meters.
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