https://arab.news/bqwsu
- The acquisition was funded with Shariah-compliant bank financing
RIYADH: As part of its expansion and diversification strategy Riyad Capital, through its Riyad REIT, has bought an office building adjacent to the King Abdulaziz City for Science and Technology in the capital for SR184.4 million ($49.07 million).
The newly developed property is located in a strategic location on King Abdullah Road and is fully leased for three years to a government-related entity, Riyad REIT said in an announcement to the Tadawul. The acquisition was funded with Shariah-compliant bank financing.
In results released last week Riyad REIT said it had increased events for the six months to the end of June to SR109 million, a 23 percent increase on the same period last year. Income from operations, a broad measure of profitability, increased by 32 percent to SR46 million over the first half of last year.
Receivables increased by 88 percent, from SR52.7 million to SR99.6 million, reflecting difficulty in collecting rents. However, the hotel operation witnessed an improvement in performance. Cash from operations from third-party managed hotels rose by 124 percent to SR14 million over the comparable period in 2020.