Jadwa REIT Saudi Fund signed a new lease contract for trade fairs held at Aber Al Yasmin Hotel, increasing the occupancy rate of the property to 100%, the fund manager, Jadwa Investment, said in a bourse filing.
The trade fairs will be leased for 10 years, with a rental annual value of SAR 849,200 for the first 5 years, and SAR 934,100 for the remaining five years of the contracts, representing an increase of 10%.
The lease contract will start on Jan. 1, 2021 and end on Dec. 31, 2030, it noted.
The property was leased to two tenants, one is operating in the hotel and the other is operating in the pharmaceutical sector. The total rental value will reach SAR 3.05 million per year (subject to increase as previously announced).
The fund manager said that the lease contracts are projected to post a yield of nearly 9.11% annually, expecting a positive financial impact on the fund’s financials for Q1 2021. According to data compiled by Argaam, Jadwa REIT Saudi Fund acquired 2 new properties at a total value of SAR 93 million in Riyadh.
The first property, an office tower, was acquired for SAR 59 million, while the second one, a hotel building, was purchased for SAR 34 million.
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