Saudi-based real estate investment traded fund, Derayah REIT, has signed an acquisition agreement worth 140 million Saudi riyals ($37.33 million) for a multi-use logistics complex in Riyadh.

The transfer of the property is expected to be completed within 30 days from the signing of the deal on July 20. However, it can be extended by mutual consent.

“The property is a multi-use logistics complex consisting of 193 units, where 164 of such units are earmarked as storage warehouses, and the remaining 29 units are earmarked as retail warehouses and offices,” the company said in a statement.

“The property will be leased to the seller in his personal capacity for 15 years (non-terminable) with an annual net rent payment of 11,200,000 riyals for the first five years, which will be increased to 11,900,000 riyals after the fifth year to the end of the lease term,” the statement added.

The acquisition will have a positive impact on Derayah REIT’s financial performance in the fourth quarter of the year, the company said.

(Writing by Gerard Aoun; editing by Cleofe Maceda)

(gerard.aoun@refinitiv.com)

#REIT #SAUDI #LOGISTICS #DERAYAH

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020