Saudi Economic and Development Securities Company (SEDCO Capital) announces availability of the addendum of the Terms and Conditions for “SEDCO Capital REIT Fund”, which include the increase of the total assets value of the Fund to enable the Unitholders to vote on the decision to increase the total assets value of the Fund by seven hundred and one million, nine hundred and fifty-one thousand, seven hundred and fifty Saudi Riyals (SAR 701,951,750), through offering additional units by accepting in-kind and cash contributions. Proceeds of the additional offering will be used to acquire the portfolio of SEDCO Capital Real Estate Income Fund II and pay the expenses and related costs.

Note that the offering period will start on 08/05/1443H corresponding to 12/12/2021 and ends on 12/05/1443H corresponding to 16/12/2021. The allocation mechanism will be as follows:

32,500,000 units will be allocated to the owners of the additional portfolio as in-kind contribution. Regarding cash units, they will be allocated according to the following:

  • The cash units are first allocated to the Unitholders of the fund registered on the day of the general assembly meeting, so that the allocation is up to a maximum of the ownership ratio of each Unitholder in the fund.
  • The remaining 20% will be allocated to institutional investors. If not covered by them;
  • The remaining cash units (if any) are allocated to registered and unregistered investors on the day of the general assembly meeting.

The additional offering of all subscription amounts received by the investors will be refunded in the following cases (unless the CMA decides otherwise):

 

  1. Inability to meet the collection of the total value of the Fund’s target assets after the date of the additional offering locks or extension after the CMA notice, or
  2. If the number of Unitholder’s is less than 200; or
  3. If the public ownership of Units is less than 30%; or
  4. The CMA has not approved the inclusion of units for any reason; or
  5. Inability to transfer ownership of the assets that make up the additional investment portfolio for the benefit of the Fund.

If the additional offering is cancelled, all subscription amounts, and subscription fees received by the investors will be refunded within 5 business days of the cancellation date; without discounting any commissions, fines or other contribution amounts.

The voting on the decision will take place through the Unitholders’ Meeting. The voting will be held remotely using Tadawulaty services on Sunday (23 / 04 /1443H), corresponding to (28 / 11 / 2021G) at 10 pm, according to the Fund Manager’s announcement on (13 / 04 / 1443H), corresponding to (18 / 11 / 2021G).

The addendum of the Terms and Conditions can be accessed through the PDF below.

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