SEDCO Capital, in its capacity as the Fund Manager of SEDCO Capital REIT Fund announces that it has received an initial ruling from the General Court in Jeddah to terminate the lease agreement of Burj Al Hayat Hotel in Riyadh.

Dar Almasarat Alarabiya (the “tenant”) has filed a lawsuit to terminate the lease agreement of Burj Al Hayat Hotel-Riyadh, which ends on December 9, 2024. The tenant claims that the property has been underutilized due to the Riyadh Metro project and road closures in the area surrounding the property. The General Court in Jeddah issued a preliminary ruling to terminate the lease agreement. This ruling is currently being appealed.

Currently, the Fund Manager is undertaking all the necessary legal and regulatory procedures to appeal the court’s decision in a way that protects the interests of the unitholders. The Fund Manager will continue to announce about developments in this regard as they unfold.

The impact of this event: The Fund Manager is currently unable to assess the financial impact as the judgment is not final and the property has not been handed over to the Fund yet.