Final ruling rejects Smart Tower tenant lawsuit: Derayah REIT

Logo of Derayah REIT Fund

Derayah Financial Co., the manager of Derayah REIT Fund, said it received a notice from its legal advisor, Naif Al Salem Law Firm, confirming a final and binding court ruling in favor of the fund.

In a statement to Tadawul, the company said the ruling was issued by the Fifteenth Civil Circuit at the Court of Appeals in Riyadh, and upholds the initial verdict (No. 4630667999) from the General Court’s Large Claims Circuit.

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The lower court had rejected a lawsuit filed by the main tenant of Smart Tower, Al Thimara Al Haditha for Operations and Maintenance Co. (CR No. 1010161292), seeking to void the property purchase agreement dated August 7, 2017.

In November, Derayah REIT disclosed it had received a legal notice that the current tenant of Smart Tower had filed a lawsuit aiming to nullify the 2017 acquisition deal.

Earlier, in September, Derayah REIT launched legal action against the tenant to recover SAR 40 million in overdue rent linked to the Smart Tower lease.

Smart Tower is a mixed-use property located in Riyadh’s Olaya district, at the intersection of King Fahd Road and Prince Mohammed bin Abdulaziz Road. It sits on a 3,910-square-meter plot and includes eight office floors and four ground-floor retail units.