Alinma Retail REIT inks agreement to buy office building in Riyadh for SAR 80M

Logo of Alinma Investment Co.

Alinma Retail REIT Fund signed today, Jan. 10, an agreement to acquire an office property in Riyadh for SAR 80 million, excluding the real estate transactions tax, Alinma Investment, the fund manager, said. The deal does not include any brokerage fees.

In a statement to Tadawul, Alinma Investment said the property is leased to a company for five years at a total of SAR 7.3 million (9.12% of the purchase price). The grace period granted to the tenant ends next June.

The office complex is located in Al-Qairawan district, Riyadh. It is built on a land area of 3,780 square meters (sqm), with a built-up area of 12,855 sqm. This includes parking floors and a gross leasable area of 5,197 sqm.

The property has been recently completed and is currently leased to a single tenant, which will help cut the related operational costs and facilitate the collection process.

If finalized, a positive financial impact is expected from the deal on the fund’s results. The agreement is conditional on completing the required due diligence. The deal will be financed through the credit facilities, Alinma Investment added.

To achieve a positive impact on the fund and unitholders, Alinma Investment waived the transaction fees related to this asset.

The terms and conditions of the fund stipulate that the fund manager receives 1% of the acquisition price of each asset in exchange for conducting the necessary investigation and negotiation, Alinma Investment added.