29 May 2022

Saudi Economic and Development Securities Company (SEDCO Capital) Announces an Addendum Announcement Regarding a Specific Event Occurring on the SEDCO Capital REIT Fund

Following the announcement for the Saudi Economic and Development Securities Company (SEDCO Capital) published on (16/09/1443H), corresponding to (17/04/2022G). The Fund Manager would like to clarify that an agreement has been signed to acquire Ajdan Entertainment Complex in Al-Khobar City for SAR 164,750,000, the details are as follows:

Property name: Ajdan Entertainment.

Sector: Entertainment.

City: Al-Khobar.

Location: Prince Turki Street.

Rental space: 5,840 m2.

Tenants: Cinemas leased to AMC Cinemas, and four showrooms leased to world-class restaurants.

Acquisition value: SAR 164,750,000 (excluding closing costs), allocated as follows:

SAR 81,000,000 to be paid upon signing the contract.

SAR 83,750,000 to be paid upon ownership transfer.

Total expected annual rent: SAR 12,500,000.

Google Maps: https://goo.gl/maps/FM38gAiG2y57NAd27

Terms of lease contracts:

Cinemas: 20 years (with a 5% rental increase every five years).

The other 4 showrooms: 5 years for each showroom.

In order to take care of the daily operations of the property, the Fund Manager signed a 10-year property management agreement with Ajdan Real Estate Development Company at a value of SAR 600,000 annually for the first five years and SAR 700,000 annually for the last five years.

Transferring the ownership of the property should be completed within 30 working days from the date of signing the agreement. This transaction will be financed by the facilities granted to the Fund.

The Fund Manager believes that the deal would positively contribute to the Fund’s overall performance starting from the second quarter of 2022.

Posted by admin

SEDCO Capital