Banan Real Estate completes purchase of apartment building for SAR 15 mln

Logo of Banan Real Estate Co.

Banan Real Estate Co. completed all the legal procedures related to the purchase of a furnished apartment building in Riyadh from Morina Development and Investment Co. for SAR 15.05 million, the company said in a bourse filing.

The building spans 2,000 square meters (sqm) and features 49 rooms, with a built-up area (BUA) of 3,126 sqm and an expected annual revenue of SAR 1.5 million.

The deal was partially financed using SAR 10 million from credit facilities secured from Riyad Bank and SAR 5.05 million from the company’s current cash flows.

The deal aims at boosting the company's real estate portfolio, the statement added.

The purchase will reflect positively on the growth of promising segments, including hospitality. It will further augment the company’s revenue as of Q1 2022.

The deal included no related parties, the statement added.