As reported on the Saudi Stock Exchange (Tadawul), Riyad Capital has announced that Riyad REIT has invested $94mn (SAR 350.8mn) in a U.S. property portfolio consisting of three office properties under long-term leases to strong investment grade tenants. The opportunity allows Riyad REIT to benefit from stable, yielding, Class A office assets, diversified among top U.S. cities: San Francisco, Dallas Metro, and Washington D.C.
The investment is expected to generate an annual net yield of 10% to Riyad REIT unitholders. The yield is net of all expenses, fees, and projected taxes. Based on the portfolio’s projections, Riyad REIT is expected to generate an incremental profit of SAR 0.12 per unit annually net of financing costs.