Saudi Arabia: Riyad REIT’s investment kitty hiked by over 200%
Saudi Arabia’s real estate investment trust (Riyad REIT) has been raised by over 200%
Saudi Arabia’s real estate investment trust (Riyad REIT) has been upped by over 200% by Saudi Arabia’s Capital Market Authority (CMA).
The Riyad REIT has been increased from $133m (SR500m) to $434m (SR1.6bn) – a fund hike of 226%.
Riyad REIT capital is used acquire real estate assets in the Kingdom of Saudi Arabia.
Saudi Arabia’s CMA approved the Riyad Capital Company's request to significantly boost the Riyad REIT earlier this week.
While CMA approved the request to increase the Riyad REIT, it said that its decision “should never be viewed as an endorsement of the feasibility of the capital increase for the purposes of a transaction.”
Essentially, the increase means only that the regulatory requirements under Saudi Arabia’s Capital Market Law have been met.
Riyad REIT could not be reached to comment on its future real estate investment plans in Saudi Arabia, or why its investment powers had been boosted by the CMA in the first place.
The fund hike does come after a number of Riyad REIT acquisitions.
Last year, in October 2017, Riyad REIT signed an agreement to buy the Saudi Electronic University building from the country’s Higher Education Fund for $37m.
The Riyadh-based property had a net leasable area of 17,000m² and it came just three months after news of another acquisition. In May 2017, Riyard REIT confirmed it would use a $267m fund hike to finance a takeover of the Kempinski Riyadh Hotel Complex, The Residence, and Omnia Centre.
Kempinski Riyadh boasts a five-star hotel, a ballroom, a business centre, a spa, six restaurants, residential apartments, and retail outlets.