Logo of SEDCO Capital REIT Fund
SEDCO Capital REIT Fund signed a Shariah-compliant facility agreement worth SAR 1.72 billion with its strategic partner Bank AlJazira, said fund manager Saudi Economic and Development Securities Co. (SEDCO Capital) in a statement to Tadawul.
The facility is divided as follows: SAR 800 million for refinancing the currently-withdrawn facility, SAR 375 million to be utilized by the fund manager in its investment objectives and SAR 541 million to be activated after increasing the total value of the fund’s assets and obtaining the Capital Market Authority's (CMA) approval.
The fund manager succeeded in obtaining a reduced financing profit margin by approximately 30% compared to the fund’s current facility.
The financing tenor is six years, the statement said.
The fund manager expects that this event will have a positive impact on the fund's overall performance, due to reducing the financing profit margin and increasing the possibility of acquiring new real estate assets.
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