Riyadh – Derayah REIT has acquired a commercial building in Jeddah for SAR 45 million ($12 million), its fund manager Derayah Financial said on Thursday.

The transfer of the property is expected to take place within 30 days, extendable by mutual extent, Derayah Financial said in a filing to the Saudi Stock Exchange (Tadawul).

Completed in 2014 and located in Jeddah’s Al-Zahra District comprises a ground floor in addition to four floors, a rooftop, and a basement that can take up to 95 cars.

“The property will be entirely leased to the current owner with an annual rent payment of SAR 3.825 million for 10 years (binding) commencing on the property transfer date. The annual rent will be increased to SAR 4.050 million after the fifth year,” Derayah Financial said in its statement.

It added that the tenant would be entitled to acquiring the property from the fund at SAR 45 million at the end of the fifth year or the tenth year of the lease.

“The Tenant shall provide promissory notes covering the lease payments throughout the lease duration,” Derayah stated.

Source: Mubasher

All Rights Reserved - Mubasher Info © 2005 - 2018 Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.