RIYADH: The Saudi-listed developer, Arriyadh Development Co., has acquired a commercial building at SR168 million ($44.7 million) in the north of Riyadh, according to a bourse filing. The deal is part of plans to diversify the company’s real estate and investments portfolio, it said in a statement. The building is located in Al-Malqa district, which is near the strategic intersection of King Fahd and King Salman roads in one of Riyadh’s fastest-growing districts. The 10,500 sq. m net leasable area, in addition to the advertising screen on top of the building, is expected to generate annual revenue of SR14.3 million. The chief executive officer of ARDCO, Jihad Al-Qadi, said that Arriyadh Development is set to move forward banking on this rich legacy toward realizing the goals of Vision 2030. Highlighting the superb location of the building, Al-Qadi added: “We are currently working on enhancing the performance of our assets under the real estate portfolio.” “We expect to reach our target returns in the coming years underpinned by our acquisition of assets with attractive returns and by improving the performance of our existing real estate assets,” he continued. The building’s investment appeal stems from its long-term lease contracts that range between five and 10 years with top institutional financial and commercial corporations. Last April, the company saw its net profit increase by 25 percent during the first quarter of 2022 despite a drop of 3 percent in operating revenues. The company reportedly made SR139 million in profit, compared to SR111 million for the same period a year earlier. Earlier in 2021, the company appointed Al-Qadi as its CEO who previously worked at the Public Investment Fund, where he was the director of real estate asset management and director of institutional development.