Saudi Economic and Development Securities Company (SEDCO Capital), in its capacity as the Fund manager of SEDCO Capital REIT Fund, announces the signing of a Sale and Purchase Agreement for the “Atelier Lavie” property located in Jeddah on 2 Safar 1447H, corresponding to 27 July 2025.

Event Description:

The Sale and Purchase Agreement was signed for a total value of SAR 515,000,000 (exclusive of real estate transaction tax and any other applicable selling fees). The buyer has paid a non-refundable deposit of SAR 5,000,000, with the remaining purchase price to be settled and title transfer completed within 60 business days, extendable by mutual written agreement between the parties.

It is worth noting that the Fund had acquired the property in June 2023 as per the following details:

  • Acquisition Price: SAR 492,500,000, reflecting an expected gain of 4.57% compared to the acquisition cost.
  • Book Value as of 31 December 2024 (according to the latest audited financial statements): SAR 477,510,000, indicating anticipated gains of 7.85%.
  • Total Rental Income Recorded from Acquisition until 31 December 2024 (according to the latest audited financial statements): SAR 52,284,375.

The Impact Caused by the Event:

Impact of the Transaction on the Fund’s Strategy:

This step falls within the Fund’s strategy (if completed) to provide multiple options that serve the Fund’s performance and financial position, including, but not limited to:

  • Targeting new acquisitions of high-quality, income-generating real estate assets, which will add value to the Fund’s real estate portfolio.
  • Using a portion of the sale proceeds to repay existing bank facilities partially, thus reducing the Fund’s financing burden.

Expected Financial Impact:

The Fund Manager expects the overall impact of this event to be positive on the Fund’s real estate portfolio as well as on the Fund’s performance and results, in the event these transactions are completed.

The Fund Manager will disclose any developments in this regard in due course.