Saudi-based Mulkia Investment Company has acquired one of the kingdom’s luxury hotel villa property located at Al Hada, a city in the Makkah province, for SAR95mn.
The Vivienda Hotel Villas Al Hada, located on Prince Faisal bin Fahad Road over a 10,000sqm 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 SAR18mn fund, said the company in a statement.
While the remaining amount, SAR77mn will be secured through loans from local banks, it stated.
Mulkia Plaza Development Real Estate Fund, managed by Mulkia Investment Company, owns a 24% stake in the project, which boasts a built-up area of 7,200sqm.
The project lease contract has been signed by Forus Real Estate Investment and Development Company for a period of 20 years, starting with a lease amount of SAR1.1mn for the first five years. The rent will increase by 7% every five years, said the company statement.
Mulkia Gulf Real Estate REIT share in the rent is SAR8.3mn per year, it added.