Riyad REIT Fund — Capital/Financing Update 2020

Dec 13, 2020

Riyad Capital Announces the Occurrence of a Specific Event Relating to Riyad REIT (Investing SAR 92.5 million in a U.S. office building in the United States of America)

4330 · 13/12/2020 08:12:31 · Announcement #61329 · View on Saudi Exchange

Riyad Capital Announces the Occurrence of a Specific Event Relating to Riyad REIT (Investing SAR 92.5 million in a U.S. office building in the United States of America)

4330

RIYAD REIT

-2.71 %

1442/04/28     13/12/2020 08:12:31

Element List	Explanation
Description of the Event	Riyad Capital ("the Fund Manager") has announced that Riyad REIT has invested SAR 92.5 million in a U.S. office building on land area of 32,000 square meters (plus approximately 2,400 parking spaces) and net leasable area of 61,400 square meters located in Irvine (Orange County), Los Angeles MSA, California, United States of America.

The Property is the Broadcom Corporate Campus, a Class A office and R&D (research & development) mission critical campus located in Irvine (Orange County), California, next to the Irvine Spectrum Center – one of Southern California’s top retail and dining destinations. The Campus is located in close proximity to many entertainment and activity destinations including Disneyland, Laguna Beach, Newport Beach, Downtown Anaheim, and others. The Irvine Spectrum Area includes major companies such as, Lexus, KPMG, Amazon, UBS, Canon, Philips, and other large corporations.

The Property is leased to Broadcom Corporation (a wholly owned subsidiary of Broadcom, Inc.) on a long-term lease of 17 years. Broadcom Inc. is an investment-grade tenant, Fortune 500 Company, and a global technology leader that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom has a market cap of $154 billion, and an annual revenue of $22.6 Billion.  The Company is also a leader in R&D (investing $44.7 billion in R&D in 2019) and has one of the industry’s broadest IP portfolio with more than 23,000 patents. 

The investment is funded from the Shariah-compliant facilities available to Riyad REIT. The Impact Caused by the Event The investment is expected to generate an average annual yield of 8% to Riyad REIT over a 5-year investment period.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.