Here are Riyad REIT’s expansion plans for 2018

As Riyad REIT focuses on achieving steady profit growth for unit holders, the fund intends to continue to diversify its real estate portfolio by acquiring high-end properties in 2018.

Through effective fund management and various acquisitions, Riyad REIT was able to increase dividend by 15 percent in the second half of 2017, compared to H1, the fund said in its annual report.

Going forward, the fund plans to expand across various sectors and increase its presence in Saudi Arabia’s second largest city, Jeddah.

It also plans future acquisitions, including:

- Expanding in the educational sector by acquiring Saudi Electronic University.

- Acquiring a property located on one of Jeddah’s main commercial roads.

- Buying a landmark building in Riyadh, making Riyad REIT the first real estate trading fund acquiring such a property.

During H1, the fund expects the opening of Farzi Café, the international Indian restaurant chain and one of the tenants at The Residence project, as well as Braira Hotel Villas in Hittin.

Riyad REIT expects the opening of Ascott Corniche Al Khobar in the second half of the year.

The fund’s gross profit increased 63 percent year-on-year (YoY) in 2017 to SAR 38.52 million, while its net profit reached 23.67 million.

The REIT’s board of directors approved in May 2017 the acquisition of assets worth SAR 1.05 billion. The board also recommended a capital hike through rights issue to finance the acquisitions.

Meanwhile, the fund in October signed an agreement with the Higher Education Fund to acquire the Saudi Electronic University building in Riyadh for SAR 137.65 million.