Riyadh – Mubasher: Saudi Arabia-based Mulkia Investment Company announced that Mulkia Gulf Real Estate Investment Traded Fund (Mulkia REIT Fund) has acquired a 76% stake in Vivienda Hotel Villas at a value of SAR 95 million ($25.3 million).
The property consists of 24 hotel villas, covering an approximate area of 10,000 square metres and with a built area of 7,200 square metres, according to a statement to the Saudi Stock Exchange (Tadawul) on Tuesday.
“The acquisition will be financed in part through any offering surplus available in the Fund of SAR 18 million. While the remaining of the acquisition value of SAR 77 million by borrowing from local banks,” the statement added.
Mulkia Plaza Development Real Estate Fund that is managed by Mulkia Investment Company owns a 24% stake in the project.
The project's 20-year lease agreement started with a SAR 10.9 million leasing amount value for the first five years and the rent’ value will rise 7% every five years.
Mulkia Gulf Real Estate REIT’s stake in the rent is estimated at SAR 8.3 million.
This acquisition is expected to boost profits from operations by 10% in 2018 and the fund’s volume will amount to SAR 677 million, up from SAR 600 million.
