Riyadh REIT Fund invested an amount of 233 million riyals in a real estate investment portfolio in the logistics sector in America, where the portfolio consists of 5 modern, high-quality (Class A) real estate assets that are generating for income.
According to Arabia Net, the fund's operator, Riyad Capital, said that these real estate assets are fully leased to investment-grade tenants and have an average lease period of 15 years. and in four different locations (Missouri, Texas, South Carolina, Alabama).
It is worth mentioning that the properties were newly developed to suit logistics services and built-to-suit structure. Where the total real estate assets area is more than 4.5 million square feet in the southeastern USA, which is one of the most developed regions in the United States and is recognized as a specialized industrial and logistical center.
It is mentioned that the lease contracts extend for 15 years and are renewable for three main tenants who are as follows:
- Ranked A-A- according to the S&P Index and No. 2 on the Fortune 500 list
- Lowe's, rated BBB+ by S&P and No. 44 on the Fortune 500 list
- Techtronic Industries, Moody's rated A-
The logistics sector is one of the most important real estate asset classes that are of great interest to institutional capitals and investors in general.
It is worth noting that the investment is part of the process of increasing the fund's capital through the issuance of new shares, and it was fully financed through the short-term bank facilities available to the Fund and compatible with With the standards of Islamic Sharia, to be paid after the completion of the capital increase procedures.
The investment is expected to generate an average annual return of 7.5% for the fund over a four-year investment period, according to a company statement.
