Riyadh – Mubasher: Derayah Financial said that Derayah REIT Fund signed a binding purchase agreement on Monday to acquire a multi-use logistics complex for SAR 140 million.
Situated in Riyadh, the property is built on an area of around 120,000 square meters and comprises 193 units, of which 164 are storage warehouses and the remaining 29 are retail warehouses and offices, according to a bourse disclosure of Tuesday.
Following this acquisition, the average lease duration of Derayah REIT properties will increase to six years from five years while the percentage of warehouses and logistics services in the fund will rise to 38% from 32% of total assets value.
This falls within the plan of Derayah Financial, the Fund Manager, to diversify the owned assets and expand in the logistics industry, which has proven resilient during the COVID-19 pandemic, while gradually shifting from traditional shopping to online shopping.
Legal and administrative procedures required for ownership transfer are expected to finalise within 30 days from the signing date, renewable. The transaction will be financed through credit facilities available at the fund.
According to the statement, the acquisition is likely to have a positive impact on the fund’s financials for the fourth quarter (Q4) of 2020.
