Alinma Retail REIT acquires property worth SAR 52 mln in Riyadh

Logo of Alinma Investment Co.

Alinma Retail REIT Fund has acquired an office and commercial building in Riyadh worth SAR 52 million, excluding real estate transaction tax, with a commission fee of SAR 500,000 (0.96%), fund manager Alinma Investment Co. said in a statement to Tadawul.

The building is located on Al-Imam Abdullah bin Saud bin Abdulaziz Road in Riyadh over an area of 4,875 square meters and a built-up area of 10,955 square meters.

It added that the total income of the property is SAR 4.73 million, with a return of 9.1%, which could reach SAR 5.18 million (with a return of 9.97%).

The acquisition was financed through the Sharia-compliant banking facilities available to the fund from Alinma Bank.

The related financial impact will be overall positive, which will reflect on the fund's results during the upcoming period, the fund manager said.

There are no related parties. The acquisition agreement is conditional on the completion of due diligence procedures.

The fund's terms and conditions stipulate that the fund manager receives 1% of the acquisition price of each real estate asset in exchange for conducting the necessary investigations and negotiations.

The statement said that Alinma Investment waived the respective fee to achieve a positive impact on the fund and unitholders.

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