Riyad REIT exits real estate asset in US, makes additional net profit of SAR 0.11 per unit

Logo of Riyad REIT Fund

Riyad REIT Fund completed exit from a real estate asset in the US - Two Washingtonian Building in Washington D.C., Metro area - for a total return (ROI) of 51% and an internal rate of return (IRR) of 24.4%, Riyad Capital, the fund manager, said in a bourse statement.

The returns included nearly 9.9% of annual cash dividends starting from the inception of the investment on Dec. 8, 2019, in addition to capital gains of about 36%.

Riyad REIT achieved an additional net profit of SAR 0.11 per unit.

In December 2019, the fund invested SAR 350.8 million in a diversified real estate portfolio in the US, which consisted of three Class-A real estate assets. Investment in the Two Washingtonian amounts to SAR 52.51 million.

Two Washingtonian is 100% leased to Leidos Holding (an investment grade Fortune 500 company that is deemed as one of the largest government contractors) under a 13-year lease.

The 27,300 square meter- asset is located in the Washington metropolitan area within the Biotechnology Cluster - one of the best biotechnology clusters in the US.

Riyad REIT has invested a total of SAR 675 million in a series of international property offerings in the US and Europe.