Riyadh - Mubasher: Al Maather REIT Fund has successfully completed SAR 17 million agreement to purchase an educational facility land, located at Al Salam district in Riyadh.
The facility was leased out to Integrated Development for 11 years at an annual rental value of SAR 3.6 million, according to Osool & Bakheet Investment Company's disclosure to the Saudi Stock Exchange (Tadawul) on Thursday.
The rental value is fixed during the first five years and will increase from the sixth year by 17.5%.
Meanwhile, the tenant has started building an education complex on the land with a total value of around SAR 5.94 million, and the Fund will complete the rest of the complex's construction with a value of SAR 17.1 million.
Transferring property ownership to the Fund is expected to have a positive financial impact by raising net revenues following a deduction in fund fees and an expansion of weighted average lease expiry.
