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SEDCO Capital REIT Fund signed an agreement to acquire Ajdan Entertainment Complex in Al-Khobar for a total value of SAR 164.75 million, excluding the real estate transactions tax and acquisition fees, fund manager, SEDCO Capital, said in a bourse filling today, May 29.
A total of SAR 81 million out of the deal’s value were paid upon signing the contract, while the remaining amount of SAR 83.75 million is due upon ownership transfer.
The deal will be financed through the facilities granted to the fund, SEDCO Capital added.
The complex has a gross leasable area of 5,840 square meters, which includes cinemas leased to AMC and four showrooms rented for world-class restaurants, with a total expected annual lease value of SAR 12.5 million.
The cinemas are leased for 20 years (with a 5% rental increase every five years), while the other showrooms are leased for five years each.
The fund manager mentioned also that it signed a 10-year property management agreement with Ajdan Real Estate Development Co. in order to undertake the property’s daily operations at an annual value of SAR 600,000 for the first five years and SAR 700,000 annually for the remainder.
The ownership transfer should be completed within 30 working days from the agreement signing date, the statement added, expecting the deal to have a positive impact on the fund’s overall performance starting from Q2 2022.
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