SEDCO Capital REIT signs MoU to acquire SAR 750M real estate portfolio

Logo of SEDCO Capital REIT Fund

SEDCO Capital REIT Fund signed today, Feb. 12, a memorandum of understanding (MoU) to acquire a diversified real estate portfolio across multiple Saudi cities from a single seller, according to Saudi Economic and Development Securities Co. (SEDCO Capital), the fund manager.

In a statement to Tadawul, SEDCO Capital said the estimated deal value is approximately SAR 750 million, with the final acquisition price to be determined upon completing legal and technical due diligence and property valuation.

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The targeted properties are fully developed, income-generating assets, spanning a total land area of approximately 152,080 square meters (sqm) and a built-up area of around 142,260 sqm.

The real estate portfolio includes office and commercial properties across Riyadh, Al Khobar, Dammam, Hafar Al-Batin, Al-Ahsa, and Abha, with an average occupancy rate of 98.78% and an average lease term of seven years.

If finalized, the acquisition will be funded through the fund’s available cash, granted facilities, and an in-kind subscription from the seller for a part of the properties’ total value. Legal and technical due diligence shall be finalized within six months from the signing date.

The fund manager expects the deal to positively impact the fund’s real estate portfolio, overall performance, and results.

Any further developments will be announced in due course, the statement added.