Musharaka REIT acquires SAR 70 mln worth of properties in Riyadh

Musharaka REIT completed the acquisition of Al Bazai showrooms for Toyota, Lexus, and Skoda, along with a dedicated car maintenance center, in Riyadh for SAR 70 million, Musharaka Capital, the fund manager, said in a bourse filing on Tuesday.

The acquisition is funded through Shariah-compliant bank facilities, it added.

The property will be leased for 15 years to Saleh Abdullah Al Bazai & Sons Company, with the first 10 years of the contract binding under promissory notes.

The annual rental value starts at SAR 6 million, which will increase every five years by 10%.

The financial impact of the deal is expected to reflect in Q1 2020, the statement said.