Riyadh REIT invests SAR 60 mln in US office building

Logo of Riyad REIT Fund

Riyad Capital announced that Riyad REIT Fund invested SAR 60 million in a US office building.

The office building, located in Conshohocken (Philadelphia MSA), Pennsylvania, covers a land area of 14,892 square meters and has 1,394 parking spaces, the fund manager said in a bourse filing today, Aug. 16. The net leasable area is 39,867 square meters.

The investment is funded from the Shariah-compliant facilities available to Riyad REIT. It is expected to generate an average annual yield of 8% to the fund over a five-year investment period.

The “Class A” office building is AmerisourceBergen Global HQ, one of the world’s largest global companies. AmerisourceBergen is an investment-grade tenant that is ranked no. 8 on Fortune 500.

The company is also one of the largest pharmaceutical distributors globally, handling over 30% of the world’s pharmaceuticals and generating revenues of nearly $190 billion. This is an essential sector, especially in the post-COVID era that requires significant distribution of pharmaceutical products and vaccines.

The property is located close to many entertainment and activity destinations, including King of Prussia Mall (the third largest mall in the US), Gulph Mills Golf Club and other destinations.

The immediate area also includes major companies such as, Amazon, UBS, Mercyhealth, Oracle, Morgan Stanley, Credit Suisse and other large corporations, the statement noted.