Logo of Al Rajhi REIT Fund
Al Rajhi REIT Fund acquired a new property for SAR 93 million, fund manager Al Rajhi Capital said in a statement to Tadawul.
The REIT fund acquired Oasis Mall on Feb. 8, purchasing the land title for SAR 35 million and the land leasehold rights of the property for SAR 58 million.
The transaction was funded through Shariah-compliant debt facility and Al Rajhi REIT now owns the property on a freehold basis.
The two-storied mall, with a standalone restaurant outside the building, is located in Al Kharj Governance on King Abdullah Road, on a plot area of 16,719.61 square meters (sqm). The built-up area accounts for 17,466.42 sqm.
The mall building is fully let to Landmark Arabia Ltd. for 18 years, from May 28, 2015, until May 27, 2033.
The rent amount is SAR 6.8 million for the first five years, SAR 7.82 million for the next five years and SAR 9.35 million for the eight years after. The current rent is SAR 7.82 million.
The standalone restaurant is leased to Herfy Food Services Co. for 19 years, from Oct. 25, 2014, until March 31, 2033.
The rent amount is SAR 450,000 for the first five years, SAR 500,000 for the next five years and SAR 550,000 for the remaining nine years. The current rent is SAR 500,000.
The total current rental income for the property is SAR 8.32 million, and the rental rate is 8.9% of the purchase price.
Al Rajhi REIT expects the acquisition to have a positive impact on its financial performance.
Al Rajhi Capital confirmed that there are no related parties to the acquisition, except for Al Rajhi Bank, from which credit facilities were obtained.
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