Following to the announcement for SEDCO Capital published on 20 Dhul-Hijjah 1445H corresponding to 26 June 2024, regarding the extension of the Memorandum of Understanding signed on 09 Jumada Al-Awwal 1445H corresponding to 23 November 2023 to purchase an educational complex property (“the property”) in the United Arab Emirates

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The change that has occurred:
The Saudi Economic and Development Securities Company (“SEDCO Capital”), in its capacity as fund manager of SEDCO Capital REIT Fund (“the Fund”), would like to announce the signing of the purchase agreement and completion of the acquisition of the educational complex located in Dubai, United Arab Emirates, with the following details:

• It is developed and income-generating asset in Dubai, with a total land area estimated at 36,692 sqm and a total building area estimated at 18,250 sqm.

• The lease term is 21 years with an average annual rental value of AED 14.2 million over the term of the contract, and an average return of up to 9%.

• The property is leased under a long-term, single-tenant lease agreement that is net of all operating expenses. The tenant is considered an experienced operator in the education sector in the region.

• The acquisition value amounts to AED 158 million (excluding any acquisition-related fees).

• The transaction was financed through facilities granted to the Fund.

The impact of the change:
The Fund Manager expects the impact of this event to be generally positive on the Fund’s real estate portfolio, as well as on the Fund’s overall performance and results.