Logo of SICO Saudi REIT
SICO Capital Co., manager of SICO Saudi REIT Fund, signed today, March 20, an agreement to acquire a commercial property in Riyadh for SAR 448 million, excluding real estate tax, pursuit and acquisition expenses, according to a bourse filing.
The property will be financed through an in-kind contribution of SAR 148 million from the seller, which constitutes 33% of the total value. In addition, SAR 300 million will be paid in cash through bank credit facilities arranged by SICO Saudi REIT Fund.
Spanning across a land area of 11,489 square meters (sqm), with a built-up area of 36,495 sqm, the new property is located in Riyadh’s Hittin District, comprising office spaces, restaurants and cafes.
The property, which will become operational in April, is claimed by the seller as 100% occupied, offering a total rental income of SAR 31.5 million annually.
The acquisition is likely to positively impact the fund’s returns, offering geographic diversification within property portfolios to boosting the fund’s yield and footprint across Riyadh.
The agreement is still subject to and conditional upon SICO Saudi REIT Fund carrying out satisfactory due diligence in compliance with the legal requirements of this preliminary contract.
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