Logo of Alinma Investment Co.
Alinma Retail REIT Fund signed an agreement today, Jan. 1, to purchase an office property in Riyadh for SAR 110 million (exclusive of brokerage fees and real estate transaction tax), the fund manager, Alinma Investment Co., said in a filing to Tadawul.
The property, located in Hittin district, Riyadh, is built over 5,180 square meters (sqm), with a built-up area of 15,362 sqm and a gross leasable area of 6,627 sqm.
The property was rented for a total of more than SAR 9.86 million (8.96% of the purchase price).
The property is strategically located, and the development has been completed recently. Moreover, it is currently leased to two companies as the main tenants, which will help reduce the related operational costs and facilitate the collection process.
Due to the tenants’ grace period, which ends in May 2024 for the first tenant and June 2024 for the second, it was agreed with the seller to postpone payment and transfer the title deeds until April 2024.
The agreement is conditional on completing due diligence on the property and on the intention to be financed through credit facilities.
Alinma Investment waived the transaction fees related to this asset that reach 1% of the purchase price, as the terms and conditions of the fund stipulate that the fund manager receives 1% of each real estate asset in exchange for conducting the necessary investigation and negotiation by the fund manager.
The relevant financial impact of the deal is expected to be positive in general, which will be reflected in the fund’s results during the coming period if the deal is completed.
There are no related parties included in the transaction, the statement said.
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