Derayah REIT faces another lawsuit from former tenant of Smart Tower

Logo of Derayah REIT Fund

Derayah Financial Co., the manager of the Derayah REIT Fund, announced that the former tenant of the Smart Tower property, whose lease was terminated by final judgment on Sept. 10, Al Thamra Al Hadetha Co., has filed a lawsuit against the fund.

The company received notice that the previous tenant has filed another lawsuit similar to a previous lawsuit.

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The lawsuit was ruled in favor of the fund in accordance with the announcement published on May 15, 2025, calling for the same prior demands and the annulment of the property purchase contract concluded on August 7, 2017.

The fund manager also noted that it is unable to determine the impact resulting from this event, adding that it will announce any relevant material developments as soon as they become available.

According to the company, the previous tenant, Al Thamra Al Hadetha Co., had previously filed a similar lawsuit demanding the cancellation of the property purchase contract.

A final judicial ruling was issued in this regard by the Fifteenth Circuit of the Court of Appeal in Riyadh in favor of the fund, upholding the initial ruling issued by the circuit competent to consider the first major lawsuits in the General Court in Riyadh, which ruled (to dismiss the plaintiff’s lawsuit against the Fund). The former tenant of the Smart Tower property filed a grievance before the Supreme Court against the above-mentioned ruling, and the appeal was rejected by the Supreme Court.

According to data available with Argaam, Derayah Financial announced in June that a preliminary court ruling was issued by the competent circuit of the Riyadh General Court in favor of the fund, terminating the electronic lease contract with Al Thamra Al Hadetha Co. for Smart Tower in Riyadh due to non-payment of rent.

Last November, the company received notice that the tenant of the Smart Tower property had filed a lawsuit against Derayah REIT, demanding the annulment of the property purchase contract concluded on August 7, 2017.

In September 2024, the Derayah REIT initiated legal proceedings against the main tenant of the Smart Tower to collect the outstanding rent amounting to SAR 40 million.