Riyad REIT Fund sells Al Izdihar property for 47 million riyals
Riyad Capital, in its capacity as manager of the Riyad REIT Fund, announced the sale of the Al-Izdihar property located in the city of Riyadh, in the Al-Izdihar district, on 06/10/1447 AH, corresponding to 12/01/2025 AD.
According to the company’s statement on the website "Saudi Arabia trading"The property consists of offices and commercial showrooms, with an occupancy rate of 98% as of the date of sale, and a rental return of 3,867,899 riyals for the 12-month period preceding the date of sale.
It noted that the property was sold at a value of 47 million riyals, not including the real estate transaction tax. It should be noted that the Fund had acquired the property in 2015 for a value of 38 million riyals.
According to the most recent evaluation of the Fund’s properties, the average valuation of the property amounted to 45,261,500 riyals, while the book value of the property amounted to 34,530,711 riyals. Accordingly, profits will be recorded in the fund’s financial statements amounting to 12,469,289 riyals.
The company said: The sale process will provide financial flexibility to the fund to raise the efficiency of its financial position and the quality of the performance of its assets, as the proceeds of the sale will be used in several aspects, including, but not limited to, alleviating the fund’s financial obligations in addition to improving the quality of existing properties, which is expected to contribute to increasing returns and improving the fund’s performance.
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