“Bonyan REIT Fund Acquires Real Estate Asset in Riyadh with SR75 mln”

Saudi Fransi Capital, in its capacity as the Fund Manager of Bonyan REIT announced on Monday the completion of Bonyan REIT’s acquisition of a real estate asset in the city of Riyadh on 30.01.2022. The details of the acquisition are described below:
The property is an office building located in Al-Ghadeer District on Al-Sail Al-Kabeer Road on a total land size spanning 4,360 square meters, with a total built-up area of 13,261 square meters. The purchase price of the property is SR75 million, reflecting an average acquisition yield of 8.6%.
The company said in a statement on Tadawul on Monday that the acquisition was financed through Shariah-compliant loan facility.
It also indicated that the office building is leased to Alkhaleej Training and Education Company as a triple-net lease for 20 years starting on 16 June 2015 (remaining lease term is 13.5 years).
The Fund will pay a brokerage fees in respect of this acquisition.
The financial impact of this transaction is expected to be positive on the Fund’s results, the company concluded.