Riyad REIT Fund invested SAR 350.8 million in a US property portfolio consisting of three office properties under long-term leases to strong investment grade tenants, the fund manager, Riyad Capital, said in a bourse statement.
The portfolio allows Riyad REIT to benefit from stable, yielding, Class A office assets, diversified among top US cities including San Francisco, Dallas Metro, and Washington D.C. (Metro), the statement added.
The properties include the following:
- 350 Rhode Island: Class A office building: 98% leased to the City of San Francisco (investment grade) and 2% leased to Starbucks (investment grade) located in San Francisco with a 14-year lease term. The Property is 11,808 square meters and is surrounded by the world’s most recognized technology companies.
- Pioneer Headquarters: Newly built Class A office building: 100% leased to Pioneer Natural Resources with under a 20-year lease term. The Property is 104,555 square meters and is located in the Dallas Metropolitan Area in the upscale Las Colinas – which is the location of global and regional headquarters of Fortune 500.
- Two Washingtonian: Class A office building: 100% leased to Leidos Holding with under a 13-year lease term. The Property is 27,287square meters and is located in the Washington DC Metropolitan Area within the bio-technology Corridor – one of the top tech/biotech clusters in the United States.
The investment is expected to generate an annual net yield of 10% to Riyad REIT unitholders. The yield is net of all expenses, fees, and projected taxes.
Based on the portfolio’s projections, Riyad REIT is expected to generate an incremental profit of SAR 0.12 per unit annually net of financing costs, the fund manager added.
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