Al Rajhi Capital announces acquisition of a property by Al Rajhi REIT Fund

Al Rajhi Capital announced on Wednesday the acquisition of a property by Al Rajhi REIT Fund.

Completion of acquisition of a property named Oasis Mall on Tuesday 08/02/2022, by purchasing the ground title with an amount of SAR 35Mn and purchasing the ground lease-hold rights of the property with an amount of SAR 58Mn.

Resulting in owning the property on a free-hold basis with total amount of SAR 93Mn, the transaction was funded through the available shariah compliant debt facility for Al Rajhi REIT.

The property is located in Al Kharj Governance on King Abdullah Road, on a plot area of 16,719.61² and built up area of 17,466.42m². The mall consists of a two storey building and a standalone restaurant outside the building.

The mall building is fully let to Landmark Arabia LTD. for 18 years from 28/05/2015G and ends in 27/05/2033G (The remaining is 11.33 years).

The rent amount is SAR 6.8Mn for the first 5 years, SAR 7.82Mn for the next five years and SAR 9.35Mn for the eight years after (The current rent is SAR 7.82Mn).

The standalone restaurant is leased to Herfy Food Service Co. for 19 years from 25/10/2014 and ends in 31/03/2033 (The remaining is 11.15 Years).

The rent amount is SAR 450,000 for the first 5 years, SAR 500,000 for the next 5 years and SAR 550,000 for the remaining 9 years (The current rent is SAR 500,000).

The total current rental income for the property is SAR 8.32Mn and the yield is 8.9% from the purchase price.

This acquisition is expected to have a positive impact on Al Rajhi REIT’s financial performance going forward. Al Rajhi Capital confirms that there are no related parties in the acquisition except the source of financing is from existing debt facility from Al Rajhi Bank.