Mulkia Investment Company announces that Mulkia Gulf Real Estate REIT has acquired Vivienda Hotel Villas Al Hada.
Mulkia Investment Company announces that Mulkia Gulf Real Estate REIT has acquired 76% stake in Vivienda Hotel Villas Al Hada.
The project is located on Prince Faisal bin Fahad Road. The Land area is approximately 10,000 square meters and the built up area is 7,200 square meters against SAR 95 million paid to the owners of the project, the acquisition will be financed in part through any offering surplus available in the Fund of SAR 18 million. While the remaining of the acquisition value of SAR 77 million by borrowing from local banks.
Mulkia Plaza Development Real Estate Fund, managed by Mulkia Investment Company, owns a 24% stake in the project
The project lease contract has been signed for a period of 20 years starting with a lease amount of SAR 10,937,500 for the first five years. The rent will increase by 7% every five years. Mulkia Gulf Real Estate REIT share in the rent is SAR 8,312,500 per year,
The above mentioned acquisitions shall have an expected increase to the Funds From Operations by 10% in 2018 compared to the pre-acquisition expectations, which in turn will positively be reflected on future dividends distributions.
The Fund size will be 677 million SAR instead of 600 million SAR.