Al Mazaya buys commercial tower in Saudi Arabia
The new tower is the second investment for Al Mazaya in Saudi Arabia, following Al Ma'dhar Towers
Al Mazaya Holding Group has purchased a new commercial tower, occupying an area of 2,160 sqm in Riyadh, Saudi Arabia for $34.6m (SAR130m).
Engineer Al Soqabi said: "Riyadh is one of the most important and promising real estate markets in the Gulf region, providing investors with a fixed cash flow and strong margins in a period of financial market uncertainty. The purchase of the new tower reflects increased demand for fully serviced, leasable real estate in Riyadh. The new asset has a promising annual investment yield of up to 9%."
Al Soqabi added the tower is distinguished by its strategic location on General Olaya Road, parallel to King Fahd Road, in one of the busiest areas of Riyadh, two kilometers from Cairo Square.
The tower is close to a range of vital commercial centers and sites, including Al Faisaliah Tower and Riyadh Gallery Complex.
He also said that the built area of the tower is 14,000 sqm in size. It consists of a ground floor, which includes three trading stores, and seven other floors that include 55 business offices and contains a health club and a prayer room for personnel, as well as a car parking lot that accommodates some 55 cars.
Also the new tower is the second investment for Al Mazaya in Saudi Arabia, following Al Ma'dhar Towers that comprises of three towers serving the office and commercial sector.
Al Soqabi said that the acquisition of the new tower will add a good asset to Al Mazaya income generating assets with a strong return, this action will result in an increase in Al Mazaya total assets in the fourth quarter of 2015, as per the Saudi Gazette.