Riyad REIT inks acquisition deals worth SAR 1 bln

Riyad REIT has signed three conditional agreements to acquire properties worth SAR 1.1 billion in Riyadh and Jeddah, the real estate investment fund said in a statement to Tadawul on Thursday.

One of the deals is a 75-day Memorandum of Understanding (MoU) to acquire the 349-bed Kempinski Riyadh Hotel. The hotel is 53 percent owned by real estate developer Burj Rafal, which owns one of Riyad REIT’s funds.

Riyad Reit also inked an MoU to acquire The Plaza Residence, located in Hittin, Riyadh. The agreement is valid for 120 days, the statement said.

The third agreement – valid for 60 days – was signed to acquire Omnia Center, an office space building in Jeddah.

Riyad REIT will fund these acquisitions through loans or a capital increase, the statement said.

The deals are expected to raise the fund’s investments to SAR 1.6 billion from SAR 500 million and to diversify its assets by adding residential units, office spaces and hospitality projects to its portfolio. 

Riyad REIT also expects to increase its number of tenants to 174 from 84, and annual operating income to SAR 117 million from SAR 32 million, following the acquisitions.