Mulkia Investment transfers ownership of SAR 50 mln property to Mulkia REIT

Mulkia Investment Co. completed today, Dec. 26 the ownership transfer of the First Room Hotel Apartments to Mulkia Gulf Real Estate REIT fund, the company said in a bourse statement.

No financial impact is expected from the ownership transfer, the statement added.

Mulkia REIT Fund has recently signed an agreement to acquire a commercial building in An Namudhajiyah district, Riyadh for SAR 50 million, Argaam reported.

Following the ownership transfer, the property will be leased for 10 years to First Room Hotel Co. with a net annual return of 10% of the acquisition price. The lease will be secured by 10 promissory notes.