Derayah REIT acquires Jeddah logistics complex for SAR 44 mln

Derayah REIT has completed the acquisition and transfer of a logistics complex for SAR 44 million in Jeddah after finalizing the required legal and technical procedures, Derayah Financial, the fund manager, said in a bourse statement on Thursday.

The purchase value was funded from the fund's available banking facilities, the statement added.

"It is expected that the results of the acquisition will be positive on Derayah REIT’s financial performance in the second half of 2019," the fund manager added.

The complex comprises five stand-alone warehouses of different sizes within an enclosed perimeter. Its total built-up area is 25,800 square meters (sqm) and is built on a land area of 40,000 sqm.

The complex is entirely leased under a binding agreement to Jadeer Property Management Company, a related party to the seller, for five years starting from the property transfer date.

The tenant provided promissory notes covering the lease payments throughout the lease duration.

Additionally, a guarantor agreement is in place to enhance the strength of the lease agreement.

The property is already sub-leased to different tenants, and the master tenant will be responsible for insurance, optional expenses and maintenance of the property during the lease term at his own cost.

The annual rent of the property stands at SAR 4.1 million.

In November 2018, Derayah REIT acquired a portfolio of logistics assets worth SAR 269 million in the Kingdom, Argaam reported.