SAUDI ECONOMIC AND DEVELOPMENT SECURITIES COMPANY (SEDCO CAPITAL) ANNOUNCES AN ADDENDUM ANNOUNCEMENT REGARDING A SPECIFIC EVENT OCCURRING ON THE SEDCO CAPITAL REIT FUND
An addendum announcement for the Saudi Economic and Development Securities Company (SEDCO Capital) published on (11/05/1440H), corresponding to (17/01/2019G). The Fund Manager would like to clarify that it has obtained the Fund’s Board of Directors approval to acquire Ajdan Entertainment Complex, pursuant to the option-to-purchase agreement.
Ajdan Entertainment Complex is adjacent to Ajdan Walk property in the Corniche area in Al-Khobar city with a plot area of 6,865.99 m2. It includes popular restaurants and movie theaters to be operated by AMC Cinemas. The agreed acquisition value is SAR 164,750,000 (excluding closing costs). The targeted rental income for the first year is SAR 12,500,000. The deal should be financed by the facilities granted to the Fund.
Consequently, the Fund Manager will finalize the terms of the agreement with Ajdan Real Estate Development Company and will announce any developments in this regard.
Upon completion, the Fund Manager believes that this would positively contribute to the Fund’s overall performance and distributions.