Derayah REIT leases a hotel tower in Riyadh at SAR 6.5M annually

Derayah Financial, the fund manager of Derayah REIT Fund, announced leasing a tower, located in Al-Olaya Main Street in Riyadh, to a master tenant.

In a Tadawul filing, the fund manager noted that the annual rent starts at SAR 5.5 million and escalates to SAR 7.5 million over the lease term, bringing the average annual rent to SAR 6.5 million.

The lease term is 15 years with a grace period of 12 months, the statement added, indicating that as a result, the occupancy rate of the fund's properties will increase.

The impact is expected to be generally positive, which will be reflected in the fund's results during the second half of 2024, Derayah Financial stated.