RIYADH: Alkhabeer Capital, the managing entity of Alkhabeer REIT Fund, has officially completed the sale of its prominent B&Q property, previously known as the “Homeworks Center,” situated in the King Fahd District of Riyadh. The transaction was finalized on the 18th of September in the Islamic calendar year 1445 AH, which corresponds to the 28th of March 2024 AD.
The property was sold for a substantial sum of SAR 87,601,390, equivalent to eighty-seven million six hundred one thousand three hundred ninety Saudi Riyals. This amount is exclusive of the real estate transaction tax and brokerage fees, which are to be covered by the purchaser. The Fund initially acquired the property in September 2018 and has since enjoyed an average annual rental yield of approximately 6.7%.
This strategic disposal is set to enhance the financial agility of the Fund, strengthening its balance sheet. The proceeds from the sale are earmarked for reducing a portion of the Fund’s outstanding bank liabilities, investing in additional income-generating real estate assets, or for the development and improvement of the Fund’s existing property portfolio.
The transaction is anticipated to positively impact the Fund’s operational results for the first half of the year 2024, signaling a favorable outlook for Alkhabeer Capital and its stakeholders.