Riyad REIT invests SAR350.8mn in a diversified U.S. real estate portfolio consisting of three class A office properties
Riyad REIT announced it has invested SAR350.8mn in a U.S. property portfolio consisting of three office properties under long-term leases to strong investment grade tenants. The opportunity allows Riyad REIT to benefit from stable, yielding, Class A office assets, diversified among top U.S. cities: San Francisco, Dallas Metro and Washington D.C. (metro). The properties are as follows: i) 350 Rhode Island: a class A office building 98% leased to the City of San Francisco (investment grade) and 2% leased to Starbucks (investment grade) located in San Francisco, with a 14-year lease term. The property is 11,808 sqm and is surrounded by the world’s most recognised technology companies; ii) Pioneer Headquarters: A newly built class A office building 100% leased to Pioneer Natural Resources (an investment grade Fortune 500 company) under a 20-year lease term. The property is 104,555 sqm and is located in the Dallas Metropolitan Area in the upscale Las Colinas; and iii) Two Washingtonian: A class A office building 100% leased to Leidos Holding under a 13-year lease term. The property is 27,287 sqm and is located in the Washington DC Metropolitan Area within the bio-technology Corridor – one of the top tech/biotech clusters in the United States. The investment is expected to generate an annual net yield of 10% to Riyad REIT unit holders. The yield is net of all expenses, fees and projected taxes. Based on the portfolio’s projections, Riyad REIT is expected to generate incremental profit of SAR0.12 per unit annually net of financing costs.