Al Maather REIT signs 8-year lease for hotel units in Riyadh’s Al-Rabie GENX property

Logo of Al Maather REIT Fund

Osool & Bakheet Investment Co., the fund manager of Al Maather REIT Fund, announced today, May 26, 2021, the signing of a lease contract for hotel units in Al-Rabie GENX property in Riyadh.

Hotel and hospitality operator, Taleen, is the tenant, the fund manager said in a statement to Tadawul.

The contract duration is eight years, with the first three years binding and the following five years optional for the tenant.

Rent for the first year is SAR 2.2 million, and the value will increase by 10% as of the fourth year. The total rental values for the contract period will amount to SAR 18.7 million.

The hotel units in Al-Rabie GENX property previously evicted the tenant from Gulf ELCON Company for Trading and Contracting, under a rent claim case, after a judgment was issued in favor of the fund, the statement said.

The company aims to increase in the fund's rental income and net operating income.