Saudi Arabia's Riyad Capital said its fund, Riyad REIT, has invested 233 million riyals ($62 million) in a US Logistics portfolio consisting of five logistics properties. 

The properties, which are fully leased with a weighted average term of 15.5 years, are newly developed, built-to-suit logistics totaling over 4.5 million square feet across the Southeast US, the investment banking arm of Riyad Bank said in a statement on Tadawul on Monday. 

The investment is expected to generate an average annual yield of 7.5 percent to Riyad REIT over a four-year investment period. 

Riyad REIT is a closed-ended Shariah-compliant real estate investment traded fund. It acquires, maintains, owns, and develops a portfolio of income-producing real estate assets.  

The investment is part of the fund’s capital increase process by issuing new shares and has been funded entirely through the available shariah-compliant short-term debt facility for Riyad REIT, it added. The facilities will be repaid after the capital raising process is complete. 

(Reporting by Brinda Darasha; editing by Seban Scaria)  

brinda.darasha@lseg.com 

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