Al Maather REIT acquires Al Khobar hotel property for SAR 23 mln

Al Maather REIT Fund has completed the acquisition deal of Towlan Hotel Suites in Al Khobar for SAR 22 million in addition to a value-added tax (VAT) of SAR 1.1 million, the fund manager said in a bourse statement.

The fund has also signed a ten-year rent agreement for the whole property at SAR 2.31 million per year, net of any expenses, with a return of 10.5 percent.

The tenant has submitted promissory notes covering the whole rental period.

The deal is not a related party transaction, the statement added.

The acquired property is located in Al Khobar near Al Dhahran Mall with a total building area of 6,276 square meters and occupies a land area of almost 1,700 square meters.