Riyad Capital announces that Riyad REIT Fund Invested an amount of 233 million riyals in a real estate investment portfolio in the logistics sector in the United States of America, consisting of five modern, high-quality (Class A) income-generating real estate assets.
Today, Monday, the company said that these real estate assets are fully leased to investment-grade tenants with an average lease period of up to 15 years and in four different locations (Missouri, Texas, South Carolina, Alabama).
It is worth noting that the properties have been newly developed to suit the logistics services and with a built-to-suit rental structure. Where the total real estate assets area is more than 4.5 million square feet in the southeastern USA, which is one of the most developed regions in the United States and is recognized as a specialized industrial and logistical center.
It is noteworthy that the lease contracts extend for 15 years, subject to renewal, for three main tenants, as follows:
Amazon is ranked A- according to the S&P Index and ranked No. 2 on the Fortune 500 list.
Lowe’s, ranked BBB+ on the S&P Index and No. 44 on the Fortune 500 list
– Techtronic Industries, rated A- by Moody’s.
The logistics sector is one of the most important real estate asset classes, which is of great interest to institutional capitals and investors in general.
It is worth noting that the investment is part of the fund’s capital increase process through the issuance of new shares, and it was fully financed through the short-term bank facilities available to the fund that are compatible with Islamic Sharia standards, to be repaid following the capital increase procedures are completed.
The investment is expected to generate an average annual return of 7.5% for the fund over a four-year investment period, according to a company statement.