MEFIC REIT signs SAR 40M deal for Al-Andalus property sale

Logo of MEFIC REIT Fund

Middle East Financial Investment Co. (MEFIC Capital), in its capacity as the manager of MEFIC REIT, signed a preliminary agreement (earnest money contract) on July 24. The deal is to sell the Al-Andalus property located in Jeddah for a total value of SAR 40 million, excluding real estate transaction tax and brokerage fees.

In a statement to Tadawul, the company said the agreement was signed following the approval of the fund’s board of directors and the Sharia Supervisory Committee.

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Post signing the agreement, MEFIC REIT received an earnest payment representing 2.5% of the total sale amount.

The final sale contract, full payment, and transfer of ownership are expected to be completed within 60 days. If the buyer fails to finalize the contract, settle the full amount, and complete the transfer process within the period, the earnest payment will be non-refundable.

The company noted that the property was acquired for SAR 45.45 million, while its book value stood at SAR 38.54 million as of Dec. 31, 2024. The property generated a total rental income of SAR 21.10 million till the end of the last audited financial statements dated Dec. 31, 2024.

The deal is expected to have a positive financial impact.

MEFIC Capital confirmed that there are no related parties involved, noting that any further updates regarding the completion of the transaction will be announced in due course.