Alwaha REIT buys commercial building in Riyadh

Logo of Alwaha REIT Fund

Alwaha REIT Fund signed today, March 11, a purchase agreement for a commercial building in Riyadh with the current owner, completing the acquisition procedures announced last month, Wasata Capital, the fund manager said in a statement on Tadawul.

The property is leased under a 10-year agreement ending July 31, 2034, with net annual rent of SAR 4 million and a net yield of 9%, expecting the deal to positively impact the fund.

The purchase agreement is conditional on increasing the fund’s total assets by issuing additional units, pending approvals from Tadawul, the Capital Market Authority (CMA), and unit holders.

Alwaha REIT’s board approved acquiring a developed, income-generating commercial property in Riyadh valued at SAR 44.5 million (excluding fees and taxes), to be financed through issuing new units to raise the fund’s total assets, according to Argaam’s data.