Wasatah REIT set to acquire Mövenpick Riyadh, Coral Al Khobar after IPO

Wasatah REIT Fund will acquire its initial assets, which comprise the five-star Mövenpick Hotel Riyadh and Coral Al Khobar Hotel, within 40 days of closing its initial public offering (IPO), the fund manager, Wasatah Capital, said.

Mövenpick and Coral Al Khobar will be leased upon acquisition to Saudi Tourism Development Co. and Al Khobar Tourism Development Co., respectively under 15-year lease agreements, with the first five years binding on the tenants.

Both tenants are wholly-owned subsidiaries of Mohammed Abdulaziz Al Rajhi and Sons, respectively.

The target assets, which spread on a total area of over 120,000 square meters, are valued at SAR 1.08 billion.

Wasatah REIT’s assets were evaluated by independent valuators accredited by the Saudi Authority for Accredited Valuers (Taqeem).

The fund may acquire more properties going forward, in line with its investment criteria, Wasatah Capital added.

Wasatah REIT’s IPO started on Jan. 14 and will run up until February 1, Argaam earlier reported.

The fund aims to acquire developed income-generating properties and seeks to pay a minimum annual dividend of 90 percent from net income, exclusive of capital gains from the sale of constituent assets.