Al Rajhi Capital, one of the largest asset managers in Saudi Arabia and a leading regional investment firm, said its shari'a-compliant real estate investment trust (REIT) fund has acquired Al Salam NMC Hospital, a 100-bed multispecialty hospital located in the capital Riyadh, for SR164 million ($44 million).

The transaction was funded through the available shari'a-compliant debt facility for Al Rajhi REIT, said Al Rajhi Capital in its filing to Saudi bourse Tadawul.

A key healthcare property, Al Salam NMC Hospital is an independent building consisting of two ground floors and six upper floors. It specialises in obstetrics, gynecology, paediatrics, internal diseases and ENT department, besides general surgery.

The property has been fully leased to Al Salam Medical Group, with an annual rent payment of SR11.64 million, said the statement from Al Rajhi Capital, adding that the annual rent will be increased by five per cent every five years.

The current lease with Al Salam NMC Hospital is for a term of 15.75 years starting from April 1, 2018 and the lease agreement is been assigned to Al Rajhi REIT Fund.

The property also has an additional income of SR70,000 from leasing of an optical shop and coffee shop within the premises of hospital. The lease for both these shops has same escalations and term as that of hospital, said the statement.

Therefore, the total annual income from the property currently stands at SR11.71 million, it added.-TradeArabia News Service