SEDCO Capital signs agreement to buy commercial complex for SAR 492.5 mln in Jeddah

Logo of SEDCO Capital REIT Fund

Saudi Economic and Development Securities Co. (SEDCO Capital), the fund manager of SEDCO Capital REIT Fund, announced that the fund is currently targeting the acquisition of developed and income-generating assets only in Jeddah.

In July, SEDCO Capital REIT signed an agreement to acquire eight properties,  located between Riyadh and the Eastern Province,  with a value of approximately SAR 700 million to raise the fund's assets.

On Dec. 11, the fund manager signed an agreement to purchase a commercial complex in Al Shati district in Jeddah on King Abdulaziz Road, with a total land area of 29,745.70 square meters (sqm). It added that the purchase value is SAR 492.5 million (excluding real estate transaction tax and other acquisition costs).

The property is developed and is an income-generating asset with a net rental area of 21,000 sqm and a total income of SAR 39 million annually.

The asset includes a variety of tenants in several sectors, such as entertainment, food and beverage and cinemas. The asset is classified as one of the main destinations in Jeddah due to its central location and the diversity of brands present in the property, said the fund manager.

SEDCO Capital expects that the impact resulting from this event will be positive in general on the fund's real estate portfolio, performance and results, in the event that the process of increasing the total value of the fund's assets is completed and this transaction is completed.

The agreement is subject to completing the legal procedures to increase the total value of the fund’s assets by offering additional units, including the completion of due diligence procedures, and obtaining the approvals of the Capital Market Authority, Saudi Exchange (Tadawul), the unitholders and any other regulatory requirements, the company said.

The fund manager will disclose any developments related to this matter on time.