Al Maather REIT completes Burjeel Hospital building purchase for AED 105 mln

Logo of Al Maather REIT Fund 

Al Maather REIT Fund completed the purchase of Burjeel Hospital building, located in Sharjah, UAE, on Thursday, Feb 3, fund manager Osool and Bakheet Investment Co. said in a bourse statement.

The purchase amounted to AED 100 million, and AED 5 million value-added tax (VAT).

The building is leased to VPS Healthcare LLC, an Abu-Dhabi based healthcare service provider.

The building is rented for AED 8 million, subject to increment every five years by AED 500,000, with a total rent period of 20 years, and an average return of 8.75% during the remaining period of the contract.

There are no transactions with related parties or transactions involving conflicts of interest, the statement noted.

The impact of the acquisition will reflect positively by increasing the fund’s revenue, after deducting the fees, and expanding weighted average lease expiry.