Derayah acquires school building in Riyadh for SAR 41 mln

Derayah Financial, the fund manager of Derayah REIT, has acquired the building of Education & Skills International School in Riyadh for SAR 41.17 million, it said in a statement to Tadawul on Thursday.

The purchase was finalized after successful completion of all legal and technical procedures, the statement noted, adding the deal was completely funded through the available banking facilities for Derayah REIT.

The property, which has a total built-up area is 11,000 square metres, is leased at an annual value of SAR 3.5 million to an independent master tenant for 25 years starting August 2016.

The acquisition is expected to have a positive impact on Derayah REIT’s financial performance in the second half of 2018. There are no related parties in the acquisition, the statement added.