Musharaka Financial Company, in its capacity as the manager of Musharaka REIT Fund, announces the completion of the fund’s acquisition of commercial usufruct projects located in Riyadh, Al-Kharj, Jubail, and Dammam, with a total value of 146,093,455 SAR, after obtaining results from two property appraisers.
These projects are characterized by their strategic location, high-quality tenants, long-term lease agreements with an average of 17 years, a net return of 16% of the acquisition value, and a total leasable area of 45,408 square meters, leased to over 70 tenants. The fund manager will appoint Osoul Al-Muwahedah Company as the property manager for these projects. The details of the projects are as follows:
Al-Orouba Project
- City: Riyadh
- Land Area: 19,212 square meters
- Leasable Area: 11,057 square meters
- Acquisition Value: 42,970,348 SAR
- Annual Net Income: 6,875,256 SAR
- Location Description: Located on Al-Orouba Street, intersection of Prince Turki I Road, Riyadh, Umm Al-Hamam district.
- Number of Tenants: 14 tenants
- Key Tenants: Hyper Panda, Starbucks
Al-Kharj Project
- City: Al-Kharj
- Land Area: 16,095 square meters
- Leasable Area: 11,220 square meters
- Acquisition Value: 28,053,949 SAR
- Annual Net Income: 4,488,632 SAR
- Location Description: Located on King Abdullah bin Abdulaziz Road, near Prince Sattam bin Abdulaziz University, Granada district.
- Number of Tenants: 14 tenants
- Key Tenants: Danube, Red Tag, McDonald’s
Jubail Project
- City: Jubail
- Land Area: 39,750 square meters
- Leasable Area: 15,636 square meters
- Acquisition Value: 52,084,666 SAR
- Annual Net Income: 8,333,547 SAR
- Location Description: Located on King Faisal Road, intersection of King Fahd bin Abdulaziz Road.
- Number of Tenants: 23 tenants
- Key Tenants: Panda, Bank Al-Jazira, Home Center, McDonald’s
Al-Faisaliyah Project
- City: Dammam
- Land Area: 10,769 square meters
- Leasable Area: 7,495 square meters
- Acquisition Value: 22,984,492 SAR
- Annual Net Income: 3,677,519 SAR
- Location Description: Located on King Fahd bin Abdulaziz Road, Al-Faisaliyah district.
- Number of Tenants: 22 tenants
- Key Tenants: Danube, McDonald’s
The fund manager wishes to clarify that the financial impact of these acquisitions will lead to an increase in the fund’s profits, reduce the risks of declining rental prices in the future, and enhance the sustainability of rental income over the long term. Additionally, the long-term nature of the lease contracts in these projects will have a positive effect on increasing annual distributions and generating cash savings for the fund.