Riyad REIT signs agreement to sell property in US: Riyad Capital

Riyad Capital, in its capacity as the fund manager of Riyad REIT Fund, signed an agreement to sell a property held by one of the fund’s international investments, Riyad Global Property Fund III.

The deal is expected to be finalized in the fourth quarter of 2025, following the due diligence process and the fulfillment of conditions specified in the agreement, Riyad Capital said in a statement.

Located in Dallas, Texas, the Class A office building is fully leased to Pioneer, one of the largest energy companies in the US.

Riyad REIT invested SAR 213.7 million in the asset in 2019. The sale proceeds are expected to reach SAR 252 million (excluding fees and expenses).

In addition to the sale proceeds, the fund received SAR 103.7 million in dividends (48.5% of the investment value) during the acquisition period, bringing the total expected return on investment (ROI) to 65%.

Upon completion, the sale will provide the fund with flexibility to improve its financial position and enhance its asset efficiency. The sale proceeds will be used for several purposes, including partial repayment of outstanding loans, improving the quality of existing properties, and investing in high-quality, income-generating properties.

It is worth noting that the property is the third and final asset within Riyad Global Property Fund III. Two properties were divested in 2021 and 2022, delivering ROI of 51% and 57%, respectively.