Riyad REIT approves acquiring assets worth SAR 1 bln

Riyad REIT’s board of directors approved on Sunday proceeding with the previously announced acquisition of assets worth SAR 1.05 billion, the real estate investment fund said in a statement to Tadawul on Monday.

The fund will acquire the Kempinski Riyadh Hotel. The hotel is 53 percent owned by real estate developer Burj Rafal, which owns one of Riyad REIT’s funds.

It will also buy The Plaza Residence, which is located in Hittin, Riyadh, as well as Jeddah-based Omnia Center.

The board recommended increasing the fund’s capital by SAR 1.05 billion to finance the planned acquisitions, through offering a combination of rights issue and in-kind shares after obtaining regulatory approvals

The rights issue will be restricted to shareholders of record at the Securities Depository Center (Edaa), while contributions in-kind will be only for property owners.

The capital hike process will be subject to regulatory approval.

In a separate statement on Monday, Riyad REIT said its board had recommended a 2.6 percent cash dividend (SAR 0.26 per share) for the first half of 2017.

This will be the first dividend to be distributed by the REIT since listing on the Saudi bourse in November 2016.