Derayah Financial Announces Material Development Relating to Derayah REIT (The Acquisition and Transfer of a Logistic Real Estate Asset in Jeddah)
|Announcement Detail||Derayah Financial, the fund manager of Derayah REIT, announces the acquisition and transfer of a logistics real estate asset in Jeddah on Thursday 22/11/1440H corresponding to 25/07/2019G as the legal and technical procedures were completed successfully. The purchase price is SR44 million which was funded through the available banking facility for Derayah REIT. |
The property is located in Al-Sarawat district in Jeddah, and positioned on the east of King Faisal Rd. The property is a logistic complex consisting of 5 stand-alone warehouses of different sizes within an enclosed perimeter. The property’s total built-up area is 25,800 sqm and built on a land area of 40,000 sqm
The property is entirely leased to Jadeer Property Management Company, a related party to the seller, for 5 years (binding) commencing on property transfer date. The tenant provided promissory notes covering the lease payments throughout the lease duration. Additionally, a guarantor agreement is in place to enhance the strength of the lease agreement. The property is already sub-leased to different tenants, and the master tenant will be responsible for insurance, optional expenses and maintenance of the property during the lease term at his own cost. The annual rent of the property is SR4,060,000.
It is expected that the results of the acquisition will be positive on Derayah REIT’s financial performance in the second half of 2019.
Derayah Financial has previously announced on 23/02/1440H corresponding to 01/11/2018G the signing of a purchase agreement to acquire a portfolio of logistics real estate assets in the Kingdom of Saudi Arabia. The property that was acquired today is part of this transaction.
Derayah Financial confirms that there are no related parties in the acquisition except what was mentioned above. Derayah Financial will announce any material development as and when they occur.
The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.