SICO Saudi REIT leases 3 hotel towers for SAR 9.2 mln annually

Logo of SICO Saudi REIT Fund

SICO Capital Co., the manager of SICO Saudi REIT Fund, announced leasing three Eskan hotel towers (Eskan 4, Eskan 5 and Eskan 6), owned by the fund, to Jeddah-based hospitality firm MORO Global Co. 

The total annual rental value amounts to SAR 10.58 million, resulting in a net annual value of SAR 9.2 million after VAT deductions. 

In a statement to Tadawul, the company said the lease contracts have a duration of two years, commencing on Jan. 1, 2024, and concluding on Dec. 31, 2025. This move is positive due to the expiration of the current lease contracts for the hotel towers on December 31, 2023. 

The fund further explained that the total rental value for the entire duration of the contracts is SAR 21.16 million, with the net rental value for the entire contract duration, after deducting VAT, amounting to SAR 18.4 million. 

According to data available on Argaam, SICO Saudi REIT announced in March that it leased the hotel towers of Eskan Tower 4, 5 and 6 to MORO Global, with a net rental value of SAR 9.13 million. The contracts are set to expire on Dec. 31, 2023.