Al Ma'athar real estate investment trust (REIT) has signed an Islamic facility agreement with Al Rajhi Bank worth 400 million Saudi riyals ($106.7 million), fund manager Osool & Bakheet said in a statement on Monday.

Osool & Bakheet Investment Company said that as a collateral it provided the Shariah-compliant bank with a promissory note and mortgage pledge on properties.

The facility will be used to finance the expansion plans of the fund through new acquisitions.

The Islamic facility is for five years and the profit rate, which was not disclosed, will be paid on a semi-annual basis.

Shariah-compliant Al Ma'athar REIT posted an operating profit of 21.41 million riyals for the first six months of 2019.

Its net asset value was 587.7 million riyals as at the end of June this year.