Derayah REIT transfers sublease contracts of Smart Tower from former tenant

Accordingly, the effect will be reflected in rental income collected, particularly in light of the former tenant’s default on rent payments.

In a statement to Tadawul, the company said this step will enhance the fund’s ability to manage the property and increase its cash flow, in addition to any amounts recovered through enforcement proceedings.

The company explained that a final and enforceable eviction judgment was issued against the former tenant of the property, Al Thamra Al Hadetha Co. The fund manager has submitted a direct enforcement request before the Enforcement Court in Riyadh to evict the former tenant. The lease contract has also been terminated on the Ejar platform.

Furthermore, the sublease contracts have been transferred from the former tenant directly to the fund, while verification is ongoing to ensure that no other contracts remain untransferred.

Several enforcement orders have been issued against the former tenant, including claims amounting to SAR 36 million and SAR 10 million, and any amounts seized through enforcement are in the process of being transferred.

The fund manager is also undertaking a number of legal procedures, in cooperation with relevant legal entities, to recover outstanding rent up to the date the property was vacated.

According to data available with Argaam, in June 2025, Derayeh Financial said it received a notice from the fund’s lawyer that the Second Major Cases Circuit at the Riyadh General Court of the Riyadh General Court ruled in the fund’s favor, canceling the electronic lease with Al Thamra Al Hadetha for Smart Tower in Riyadh after the tenant failed to pay rent.

In November 2024, the current tenant filed a lawsuit against Derayah REIT Fund seeking to annul the purchase contract dated Aug. 7, 2017.

Derayeh Financial also announced in September 2024 that it initiated legal action against the main Smart Tower tenant to recover SAR 40 million in overdue rent.

At the beginning of this month, Derayah Financial received a notice from its legal advisor that the Riyadh General Court’s First Major Cases Circuit issued a preliminary ruling dismissing a lawsuit against the fund over the Smart Tower property - Al Thamra Al Hadetha Co.

The court dismissed the claim, which sought to rescind the Smart Tower purchase contract dated Aug. 7, 2017, on the grounds that the plaintiff lacked legal standing.