CMA nods to SEDCO Capital REIT Fund's asset increase

Logo of SEDCO Capital REIT Fund

The Capital Market Authority (CMA) approved the request received from Saudi Economic and Development Securities Co. (SEDCO Capital), the fund manager of SEDCO Capital REIT Fund, to increase the fund's total assets value by issuing additional units for acquiring new real estate assets, according to a statement.

The approval was granted after the fund manager's request complied with the relevant requirements as per the Real Estate Investment Funds Regulations, the statement added.

Prior to the unitholder meeting that will decide on the move, the fund manager will publish the supplementary annex of the terms and conditions (T&Cs) on the fund manager's website and the Saudi Exchange’s (Tadawul) websites.

The supplementary annex will include all relevant information unitholders need to know before making a voting decision on increasing the fund's total assets value by issuing additional units, including information about the acquisition transaction and risk factors.

A voting decision without reading the T&Cs and their supplementary annexes carefully or fully reviewing their content may involve high risk. Therefore, unitholders should carefully read the T&Cs and their supplementary annexes in order to make a well-informed decision when voting.

If the T&Cs and their supplementary annexes prove difficult to understand, it is recommended to consult with an authorized financial advisor, the regulator said.

The CMA’s approval should never be viewed as an endorsement of the feasibility of increasing the fund's total assets value by issuing additional units for the purposes of a transaction. It merely means that the regulatory requirements as per the Capital Market Law and its Executive Regulations have been met.