Derayah REIT says court dismisses Smart Tower lawsuit

Derayah REIT fund manager said the lawsuit was dismissed for lack of standing of the plaintiff

Derayah Financial, manager of Derayah REIT Fund, said it received a notice from its legal advisor that the Riyadh General Court’s First Major Cases Circuit issued a preliminary ruling dismissing a lawsuit against the fund over the Smart Tower property - Al Thamra Al Hadetha Co.

The lawsuit seeking to annul the Aug. 7, 2017, Smart Tower purchase contract was dismissed for lack of standing of the plaintiff, but the ruling can be appealed.

The company said it cannot yet assess the impact and will report any material developments once available.

In June 2025, Derayeh Financial said it received a notice from the fund’s lawyer, Naif bin Mohammed Al-Salem, that the Second Major Cases Circuit of the Riyadh General Court ruled in the fund’s favor, canceling the electronic lease with Al Thamra Al Hadetha for Smart Tower in Riyadh after the tenant failed to pay rent.

In November 2024, the current tenant filed a lawsuit against Derayah REIT Fund seeking to annul the August 7, 2017, purchase contract.

Derayeh Financial also announced in September 2024 that it initiated legal action against the main Smart Tower tenant to recover SAR 40 million in overdue rent.