Al Rajhi REIT Fund acquires two realty properties for SAR 230 mln

Al Rajhi Capital said Al Rajhi REIT Fund acquired two properties in Riyadh for SAR 230 million, according to a bourse statement.

As for Rowad AlKhaleej International School, the deal was valued at SAR 210 million. The purchase price is partly paid through issuing 11,685,867 in-kind units.

Baraem Rowad Al Khaleej Kindergarten was acquired for SAR 20 million, partly financed by issuing 1,112,939 in-kind units.

Both properties were fully leased for a term of 15 years to AlKhaleej Training and Education Co., with an annual rent payment of SAR 16.275 million and SAR 1.55 million respectively. The annual rent will be increased by 7.5% every 5 years.

This acquisition is expected to have a positive impact on Al Rajhi REIT’s financial performance going forward. Al Rajhi Capital confirms that there are no related parties in the acquisition, except for securing an existing debt facility from Al Rajhi Bank.