Bonyan REIT acquires Riyadh office building for SAR 75 mln

Logo of Bonyan REIT Fund

Bonyan REIT Fund completed, on Jan. 30, the acquisition of a real estate asset in Riyadh for a total value of SAR 75 million, Saudi Fransi Capital, the fund manager, said in a bourse statement. 

The deal reflected an average acquisition return of 8.6%. 

The property is an office building located in Al-Ghadeer District on Al-Sail Al-Kabeer Road. It spans a total area of 4,360 square meters (sqm) and a total built-up area of 13,261 sqm. 

The acquisition was financed through Shariah-compliant loan facility and the fund will pay the brokerage fees related to the acquisition.

According to the contract, the office building is leased to Alkhaleej Training and Education Co. as a triple-net lease for 20 years, which started on June 16, 2015 (the remaining lease term is 13.5 years).

The financial impact of the transaction is expected to be positive on the fund's results.

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