Derayah Real Estate Investment Trust (REIT), a shariah-compliant close-ended traded real estate investment fund in Saudi Arabia, said it has acquired three labour accommodation buildings in the Dammam region of the kingdom for SR11 million ($3 million).

The property, located in Al Mina district and positioned on the east of King Faisal Road, has a built-up area of 5,110 sq m and boasts a land area of 2,160 sq m.

All the legal and technical procedures have been completed successfully for the transaction which was funded through the available banking facilities for Derayah REIT, said the company in a statement to the Dubai Financial Market (DFM).

The property is entirely leased to Emdad Human Resources Company, a related party to the seller, for five years (binding) commencing on property transfer date.

As per the deal, the tenant shall provide promissory notes covering the lease payments throughout the lease duration. Additionally, a guarantor agreement will be in place to enhance the strength of the lease agreement, said the statement.

The property is currently used by the tenants with each being responsible for insurance, operational expenses and maintenance of the property during the lease term. The annual rent of the property is SR1.06 million ($282,178), it added.-TradeArabia News Service