Derayah REIT to obtain SAR 600 mln credit from Riyad Bank

Derayah REIT has signed a memorandum of understanding (MoU) with Riyad Bank to obtain SAR 600 million Shariah compliant bank facilities, fund manager Derayah Capital said in a bourse statement.

The credit period is seven years. During the sixth year, SAR 250 million will be paid, while the remaining SAR 350 million should be settled during the final year.

The interest margin will be repaid on semi-annual installments and will be calculated starting from the withdrawal date.

The credit aims to finance the purchase of income-generating properties to help the fund diversify its portfolio, the statement said.

Derayah Capital added that upcoming acquisitions made using the facilities will contribute to an increase in net cash distributions.