SEDCO Capital REIT signs MoU to buy AED 160.5M property in Dubai

Logo of SEDCO Capital REIT Fund

The Saudi Economic and Development Securities Company (SEDCO Capital), the SEDCO Capital REIT Fund’s manager, signed a memorandum of understanding (MoU) to purchase an educational complex property in the UAE for AED 160.5 million, excluding any fees related to the acquisition.

The property is a developed income-generating asset in Dubai, covering a total land area of 36,690 square meters and a built-up area of 18,250 square meters, the company said in a statement to Tadawul.

The property, a leased educational complex with a single long-term tenant contract, operates with an income net of all operating expenses. The operator possesses expertise in the education sector within the region.

Financing for the transaction, if finalized, will be facilitated through available cash in the fund and granted facilities.

The completion of the deal is contingent on the successful execution of legal and technical due diligence within 30 working days from the date of signing the agreement, the company added.

SEDCO Capital foresees a generally positive impact on the fund's real estate portfolio and overall performance and results, assuming the successful completion of the transaction.

Any relevant developments will be announced in due course, according to the statement.

This acquisition, part of the fund manager's strategic approach, aims to acquire distinctive properties both within and outside the Kingdom, thereby enhancing portfolio diversity and improving the fund's overall performance and returns.

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