Riyad REIT sells US-based property

Riyad Capital, the manager of Riyad REIT Fund, signed a sale agreement for a property held by Riyad Global Property Fund (3) in the US, according to a Tadawul statement.

The Class A office building is situated in Dallas, Texas, and is fully leased to Pioneer, one of the largest energy companies in the US.

The deal is expected to be completed in Q4 2025, following the conclusion of due diligence and the fulfillment of conditions specified in the agreement.

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The fund invested SAR 213.7 million in the asset in 2019. The sale proceeds are expected to reach SAR 252 million (excluding fees and expenses).

In addition to the sale proceeds, the fund received SAR 103.7 million in dividends during the holding period — representing 48.5% of the original investment — bringing the total expected return on investment (ROI) to 65%.

Upon completion, the sale will provide the fund with flexibility to improve its financial position and enhance the efficiency of its assets. The sale proceeds will be used for several purposes, including partial repayment of outstanding loans, improving the quality of existing properties, and investing in high-quality, income-generating properties.

The property is the third and final asset within Riyad Global Property Fund (3). It divested two properties in 2021 and 2022, achieving ROI of 51% and 57%, respectively.