Following to the announcement for SEDCO Capital published on 06 Dhu al-Qi’dah 1446H, corresponding to 04 May 2025G, regarding the signing of two non-binding memoranda of understanding to purchase 4 office complexes (“properties”) in the city of Riyadh on 03 Dhul-Qi’dah 1446H, corresponding to 01 May 2025.

Previous announcement link:

Click here

The change that has occurred:

The Saudi Economic and Development Securities Company (“SEDCO Capital”), in its capacity as the Fund Manager of SEDCO Capital REIT Fund (the “Fund”), would like to announce the approval of the Fund’s Board of Directors to sign a purchase agreement and complete the acquisition of one of the properties referred to in the second memorandum of understanding (“the Property”) in Riyadh on 11 Muharram 1447H, corresponding to July 6, 2025 G, according to the following details:

  • Property Name: Office Complex
  • Sector: Office
  • City: Riyadh
  • Location: King Abdulaziz Road, Al-Yasmin District
  • Net Leasable Area: 5,420 square meters
  • Acquisition Value: SAR 135 million (excluding any acquisition-related fees).

Lease Contract Details:

  • The property is leased under a single-tenant contract to a government entity (“the tenant”)
  • The lease term is estimated at 5 calendar years
  • The annual rental value is SAR 11,761,400, representing a total return of 8.71% per annum.

The acquisition 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.