Al Maather REIT acquires Towlan Suites Al Khobar for SAR 22 mln

Al Maather REIT Fund has signed an agreement to acquire Towlan Hotel Suites in Al Khobar for SAR 22 million, the fund said in a bourse statement.

The purchase will be financed through a Shariah compliant bank financing.

The property is located in Al Khobar on a land area of 1,700 square meters with a building area of 6,276 square meters.

The deal is not a related party transaction, the statement added.

The fund plans to rend the whole building for an annual rent of SAR 2.31 million through a ten-year binding agreement starting from the purchase date.

The property’s seller will also provide promissory notes throughout the whole renting period.

The deal is expected to have a positive impact on the fund’s financials upon transferring the property’s ownership, the statement also said.