Riyadh Financial Company announced yesterday that Riyadh REIT had completed the acquisition of a real estate asset in Riyadh with a total floor area of 26,520 square meters, The building was acquired for 184,437,500 riyals at a yield of 8 percent.

The acquisition was financed through Sharia-compliant bank financing. The real estate asset is newly constructed and has been fully leased to a government entity under a net-net-net (NNN) lease agreement for a renewable term of 3 years.

The real estate asset was acquired without any conditions and without any related parties, and the company expects the financial impact of this transaction to be generally positive on the fund’s results by the end of the second half of this year.