Mulkia REIT buys SAR 50 million commercial building in Riyadh

Mulkia Gulf Real Estate REIT Fund signed an agreement to acquire a commercial building “luxury apartments” in An Namudhajiyah district, Riyadh for SAR 50 million, Mulkia Investment, the fund manager, said in a bourse statement.

The 3-star property comprises luxury apartments on a total area of 11,613 square meters, and 128 furnished units.

Following the ownership transfer, the property will be leased for 10 years to First Room Hotel Co. with a net annual return of 10% of the acquisition price. The lease will be secured by 10 promissory notes.

The lease agreement will be effective from Jan. 1, 2020, while the acquisition will be funded by available banks facilities, Mulkia added.

The fund aims to achieve its strategy and the expansion plan through acquiring developed real estate properties to generate periodic and rental income inside the Kingdom of Saudi Arabia, to enhance the fund's net income and cash dividends.