Following the announcement for SEDCO Capital published on 06 Dhu al-Qi’dah 1446H, corresponding to 04 May 2025G, regarding the signing of two non-binding memoranda of understanding to purchase 4 office complexes (“properties”) in the city of Riyadh on 03 Dhul-Qi’dah 1446H, corresponding to 01 May 2025.

Previous announcement link:

https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=86901&anCat=1&cs=4344&locale=en

The Saudi Economic and Development Securities Company (“SEDCO Capital”), in its capacity as the Fund Manager of SEDCO Capital REIT Fund (the “Fund”), would like to announce the approval of the Fund’s Board of Directors to sign a purchase agreement and complete the acquisition of the office complex referenced in the first memorandum of understanding (the “Property”) in the city of Riyadh, on 08 Dhul Hijjah 1446H corresponding to 04 June 2025G, in accordance with the following details:

Property Name: Palm View Complex

Sector: Office

City: Riyadh

Location: Al-Diriyah

Total Leasable Area: 20,839 square meters

Acquisition Value: SAR 650 million (excluding any fees related to the acquisition process)

Lease Agreement Details:

  • The property will be leased under a single-tenant lease agreement to Jadwa Al Basateen Real Estate Company (the “Tenant”)
  • Lease term: 8 binding years
  • Annual rental value: SAR 55,550,660
  • Rental increase of 10% starting from the sixth year of the contract

In addition, the Fund Manager has signed a property and facility agreement with Jadwa Al Basateen Real Estate Company for a term of ten years, at an annual value of SAR 3 million, with a 10% increase starting from the sixth year of the contract. The company will be responsible for all operational activities related to the property.

The acquisition was financed through facilities granted to the Fund.

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