Derayah buys prime Riyadh property for $5.9m

Derayah REIT, a shariah-compliant close-ended traded real estate investment fund in Saudi Arabia, said one of its units has acquired a prime property, Raseel Medical Centre, located in Al Mansourah District of capital Riyadh for SR22 million ($5.85 million).

The takeover was announced by Derayah Financial, the fund manager of Derayah REIT, following the successful completion of all legal and technical procedures.

The property, located on Maan bin Zaedah Street, north of the Southern Ring Road, comprises a ground floor, first floor, rooftop and basement on a land area of 2,500 sq m.

Raseel Medical Centre, which boasts a total built-up area of 4,566 sq m, was completed in 2013, said the company in its filing to Saudi bourse Tadawul.

The property is fully leased to Raseel Medical Center, not related to the seller of the property, with an annual rent payment of SR1.7 million ($450,001).

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The annual rent will be increased by 10 per cent every five years. The lease has been binding on both parties for 20 years since December 15, 2013, it added.