Musharaka REIT to acquire SAR 70 mln worth of property in Riyadh

Musharaka REIT is set to acquire a new real estate property in Riyadh at a total value of SAR 70 million, after been assessed by two accredited assessors, the fund manager Musharaka Capital said in a bourse statement on Tuesday.

The new property is located in a strategic area, and will be re-rent to the same seller; Saleh Al-Bazai Co., who is an agent for Toyota and Lexus, as well as an exclusive dealer for ŠKODA in Saudi Arabia.

The rent agreement will extend for 15 years, including ten years under promissory notes.

The rent value will be set at SAR 6 million, and will be increased by 10 percent every five years.

The agreement will be financed from existing bank facilities, and the relevant financial impact will appear on increasing the fund’s profitability, annual dividend, and cash flows.

The property, which will allocated for car show and maintenance, spans 10,000 square meters (sqm) with a gross leasable area (GLA) of 12,070 sqm.

The related regulatory measures are expected to be finalized in 60 days, the statement added.