AlAhli REIT Fund 1 finalizes acquisition of SAR 255 mln office tower

AlAhli REIT Fund (1) has finalized the acquisition of a SAR 255 million office tower in Jeddah, fund manager NCBC said in a statement to Tadawul today.

The property, located in Al Salamah District, is an 18-floor building with a leasable area of 29,921 square meters.

The deal was financed by an existing bank facility, the statement said.

The property was leased for 5 years at a net SAR 23.1 million, a 9 percent yield.

The acquisition is expected to have a positive impact on the Fund's results starting from the second half of 2019, the statement added.

NCB Capital previously said on July 25 it signed a purchase agreement for the acquisition of the aforementioned tower.