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SEDCO Capital, the fund manager of SEDCO Capital REIT Fund, said in a bourse statement that it appealed against the initial ruling to terminate the lease contract of Burj Hayat Hotel Riyadh during the statutory objection period.
The Appellate Court confirmed the primary ruling citing its reasons.
Accordingly, SEDCO Capital submitted an objection list to the Supreme Court in Riyadh clarifying some of the statutory observations regarding the confirmed ruling issued by the Appellate Court, which is still under consideration to this date.
Until any updates are issued regarding the foreseen appeal, the fund manager is seeking all value-add opportunities to enhance and optimize the property performance and minimize the financial impact of the current situation.
In addition, it is currently discussing several offers with hotels operators that are likely to boost the property’s operational efficiency.
Thus, SEDCO Capital asserted that it cannot currently assess the financial impact of the court verdict, noting that it will disclose any development in due course.
Dar Al-Masarat Al-Arabia, the tenant, earlier filed a legal action to terminate the hotel lease contract, which expires on Dec. 9, 2024, claiming that the property has been underutilized due to the Riyadh Metro project and road closures in the surrounding area.
In December 2020, SEDCO Capital, announced that a preliminary ruling was delivered by Jeddah General Court to terminate the lease contract signed with Dar Al-Masarat Al-Arabia Co. Ltd for Burj Hayat Hotel Riyadh.
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