International Desk January 04, 2022: Riyad REIT Fund invested SAR 233 million in a US logistics portfolio comprising five class A, high-quality, income-generating, newly-built properties, fund manager Riyad Capital said in a bourse filing today, Jan. 3.
These properties are fully leased to investment-grade tenants for an average term of 15 years in four different locations, namely, Missouri, Texas, South Carolina, and Alabama.
A L S O || R E A D
Apple becomes world’s first $3 trillion company! More than India GDP
The properties were recently developed on a built-to-suit basis to cater for the logistics services, spanning over 4.5 million square feet in Southeast US – the fastest growing region in the US, recognized as an industrial and logistics hub.
The lease contracts extend for 15 years, to be renewable, for three main tenants:
– Amazon ( Rated as A- by S&P, and ranked 2nd in Fortune 500 list with $1.67 trillion in market cap),
– Lowe’s (Rated as BBB+ by S&P, and ranked 44 in Fortune 500 list with $149 billion in market cap), and
– Techtronic Industries (A world leader in cordless technology rated as A- by Moody’s).
The investment came within the fund’s capital increase process by issuing new shares. The process was fully financed by Shariah-compliant short-term credit facilities, which will be repaid after finalizing the capital increase measures.
The investment is expected to generate an average annual yield of 7.5% to Riyad REIT over a four-year investment period.
