Jadwa REIT acquires educational property for SAR 25 mln
Jadwa REIT has acquired an educational property in Riyadh for a total value of SAR 25 million, fund manager Jadwa Investment said in a bourse filing on Sunday.
Spanning a built-up area of 9,700 square meters, the acquisition of the property will be financed through the existing Shariah compliant credit-line facility obtained from Banque Saudi Fransi.
The property is currently leased to Rawd AlJinan Private School for SAR 2.5 million per year for a ten-year lease term, with a break, which can be exercised by the tenant upon the completion of five years, with a three-month notice.
The acquisition carries an initial yield of 9.8 percent and has been valued by two licensed independent valuers for an average price of SAR 31 million.
Jadwa expects the results of the acquisition will be positive on the REIT’s financial performance in the first quarter of 2019.