The 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 contract for Al Jazirah Residential Complex located in the city of Riyadh (the “Property”), on 09 Rajab 1447H, corresponding to 29 December 2025.

Description of the Event:

A sale contract for the Property has been signed for a total value of SAR 100,750,000 (excluding Real Estate Transaction Tax and any other fees related to the sale)

It is worth noting that the Fund acquired the Property in May 2018, as per the following details:

The acquisition price of the Property by the Fund amounted to SAR 67,465,000, and accordingly, a sale value increase of approximately 49% is expected compared to the acquisition price.

The book value of the Property as of 30 June 2025, according to the latest reviewed financial statements, amounted to SAR 63,796,213, reflecting expected gains of approximately 55%.

The total rental revenues recorded since the acquisition date up to 30 June 2025, based on the latest reviewed financial statements, amounted to SAR 53,288,149.

Based on the above, the total proceeds generated from the investment in the Property (comprising the sale value plus rental revenues) amount to approximately SAR 154 million, representing around 228% of the acquisition cost.

Impact Resulting from the Event:

Impact of the Transaction on the Fund’s Strategy:

This step comes as part of the Fund’s strategy (subject to completion), which aims to provide multiple options that support the Fund’s performance and financial position, including but not limited to the following:

Targeting the acquisition of new, high-quality, income-generating real estate assets, thereby adding value to the Fund’s real estate portfolio.

The potential utilization of part of the sale proceeds to partially repay existing bank facilities, which would contribute to reducing the Fund’s financing costs.

Expected Financial Impact:

The Fund Manager expects that the impact resulting from this event will be generally positive on the Fund’s performance and results, subject to the completion of the transaction.

Any material developments related to this matter will be disclosed in due course