Riyad REIT, the fund of Saudi Arabia’s Riyad Capital, stated that it has invested USD 62 million in an American Logistics portfolio comprising of 5 logistic properties.
The Riyad REIT Investment
The properties, which are comprehensively leased with a prejudiced average tenure of 15.5 years, are newly developed, fabricated-to-suit logistics comprising more than 4.5 million square feet across the Southeast United States, the investment banking wing of Riyad Bank stated in a statement on Tadawul on Monday.
The investment is estimated to produce an average annual yield of 7.5% to Riyad REIT over a 4-year investment tenure.
The fund is a padlocked Shariah-compliant real estate investment traded fund. It purchases, maintains, possesses, and develops a portfolio of income-generating real estate assets.
The investment is a fraction of the fund’s capital surge procedure by generating new shares and has been financed comprehensively via the available shariah-compliant short-tenure debt facility for Riyad REIT, it added. The conveniences will be reimbursed after the capitalization procedure is finished.