The Saudi Economic and Development Securities Company (SEDCO Capital), in its capacity as the Fund Manager of SEDCO Capital REIT Fund, announces that the Fund’s Board of Directors has approved the signing of a sale agreement for the Hyper Panda property – Al Hamdaniyah District Branch, located in Jeddah (the “Property”), on 02 Jumada Al-Akhirah 1448H, corresponding to 12 November 2026.

Description of the Event:

A sale agreement for the Property has been signed for a total value of SAR 47,000,000 (excluding Real Estate Transaction Tax and any other fees related to the sale).

It is worth noting that the Fund acquired the Property in April 2018. The key financial details relating to the Property and the transaction are as follows:

  • The Fund acquired the Property for SAR 39,300,000. Accordingly, the sale value is expected to represent an increase of 19.6% compared to the acquisition price.
  • The book value of the Property as of 30 June 2026 (according to the latest reviewed financial statements) amounted to SAR 36,997,294, reflecting an expected gain of 27%.
  • The total rental revenues recorded from the acquisition date until 30 June 2026 (according to the latest reviewed financial statements) amounted to SAR 24,074,487.
  • Based on the above, the total proceeds from the investment in the Property (comprising the sale value plus rental revenues) amount to approximately SAR 71 million, representing 181% of the acquisition cost.

Impact Resulting from the Event:

Impact of the Transaction on the Fund’s Strategy:

This step comes as part of the Fund’s strategy (subject to completion), which aims to provide multiple options that support the Fund’s performance and financial position, including but not limited to the following:

  • Targeting the acquisition of new, high-quality real estate assets with higher rental yields, thereby adding value to the Fund’s real estate portfolio.
  • The potential utilization of the sale proceeds to partially repay existing bank facilities, which would contribute to reducing the Fund’s financing costs.

Expected Financial Impact:

The Fund Manager expects that the impact resulting from this event will be generally positive on the Fund’s performance and results, subject to the completion of the transaction.

Any material developments related to this matter will be disclosed in due course