-->

"Derayah" Acquires a Logistics Property in Riyadh by SR196 Million

Derayah Financial announced the acquisition and transfer of ownership of a logistic property in Riyadh to the benefit of Derayah Riet Fund today, after the completion of all legal, technical and regulatory procedures successfully.
The acquisition was valued at SAR196 million and was fully funded by the Bank's available financing
.
The property is located in the Sali district of Riyadh on the north of the Southern Ring Road and on the east of Istanbul Street.
The property is a logistics complex that contains 12 reservoirs that are located within a closed perimeter. The built area is about 96,800 square meters built on a land area of ​​about 214,600 square meters.
The property will be fully leased to Wajir Property Management Company, a company related to the seller, for a period of five years from the date of discharge binding on the parties. The Tenant will provide a bond to cover all leases during the contract period and a lease guarantee agreement to enhance the obligation to make payments according to contract terms , Knowing that the property is leased to other sub-companies. The annual rental of the property will be 18,230,000 riyals.
The financial impact of the transaction is expected to be positive in general, which will be reflected on the results of the Fund during the first half of 2019.
Derayah Finance announced on 01/11/2018, that it has signed a binding purchase agreement to acquire Derayah Riet Fund on a range of logistics properties in the Kingdom. The property, which was acquired, is part of the deal. The Fund Manager anticipates that the remaining logistics properties will be acquired within 30 days.
Deraa Finance wishes to confirm that there are no related parties in this transaction other than the above. The Company will disclose any material developments in a timely manner.