Saudi-based Mulkia Investment Company has acquired one of the kingdom's leading luxury hotel villa property located at Al Hada, a city in the Makkah province, for SR95 million ($25.3 million).
The Vivienda Hotel Villas Al Hada, located on Prince Faisal bin Fahad Road over a 10,000 sq m area, was bought through its real estate investment trust (REIT) fund.
The acquisition will be financed in part through any offering surplus available in the SR18 million fund, said the company in a statement.
While the remaining amount SR77 million will be secured through loans from local banks, it stated.
Mulkia Plaza Development Real Estate Fund, managed by Mulkia Investment Company, owns a 24 per cent stake in the project, which boasts a built up area of 7,200 sq m.
The project lease contract has been signed by Forus Real Estate investment & Development Company for a period of 20 years starting with a lease amount of SR1.1 million for the first five years. The rent will increase by 7 per cent every five years, said the company statement.
Mulkia Gulf Real Estate REIT share in the rent is SR8.3 million per year, it added.-TradeArabia News Service
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