Kuwait’s Al Mazaya buys commercial tower in Saudi Arabia for $34.6m
Acquisition of tower in Riyadh set to increase Al Mazaya’s fourth-quarter assets
The Kuwait-based real estate development company Al Mazaya Holding says it has acquired a commercial tower in Riyadh, Saudi Arabia to enhance its portfolio of income-generating assets.
The company announced that its strategic plan objective was to diversify its sources of income and geographic locations in addition to mitigating risk.
The tower, which cost the firm $34.6 million, covers a built area of 14,000 sq m and consists of a ground floor, which includes three retail stores, and seven other floors with 55 offices.
It primarily serves as office space for the commercial sector and contains a health club, prayer room and a car parking lot for around 55 cars.
Ibrahim Al Soqabi, Group CEO of Al Mazaya Holding Company, said: “Riyadh is one of the most important and promising real estate markets in the Gulf region, providing investors with a fixed cash flow and strong margins in a period of financial market uncertainty. The purchase of the new tower reflects increased demand for fully serviced, leasable real estate in Riyadh. The new asset has a promising annual investment yield of up to 9%.”
Al Soqabi added that the acquisition would further result in an increase in Al Mazaya’s total assets in the fourth quarter of 2015.
The new tower is the second investment for Al Mazaya in Saudi Arabia, following the Al Ma’dhar Towers that comprises of three towers serving the office and commercial sector.
