Portfolio Rationalisation — Six-Asset Commercial Case Study

A private investor holding six commercial assets across Al Malazz, Al Sharafiyah, and Al Batha engaged NOA Advisory to develop a portfolio rationalization strategy. The portfolio had been assembled opportunistically over twelve years and was generating a blended yield of 5.8% against an estimated replacement cost yield of 7.4% — a significant underperformance attributable to asset age, tenant mix deterioration, and submarket divergence. NOA's scoring framework assessed each asset across four dimensions: submarket trajectory, asset quality, lease structure, and repositioning potential. The outcome was a clear three-category split: two assets designated Retain based on submarket strength and lease security, two designated Reposition based on structural value potential, and two designated Divest where the capital could be redeployed at materially better risk-adjusted returns. The recommended divestment of the two Divest assets at a combined SAR 47M would release capital for redeployment into a North Riyadh land position identified by NOA Brokerage.