Riyad REIT to acquire building in Riyadh for SAR 138 mln

Riyad REIT signed on Thursday an agreement with the Higher Education Fund to acquire the building of Saudi Electronic University in Riyadh for a SAR 137.65 million.

The property has a net leasable area of 17,000 m² and is fully leased by the ministry for Saudi Electronic University, generating an annual net income of SAR 12 million that starts immediately after ownership transfer, the fund said in a bourse statement.

The transaction will be financed through the capital hike announced in May.

In May, Riyad REIT’s board of directors approved proceeding with the previously announced acquisition of assets worth SAR 1.05 billion after increasing the fund’s capital to finance the planned acquisitions, through offering a combination of rights issue and in-kind shares.