SEDCO Capital REIT signs deal to sell Jeddah property for SAR 515M

Logo of SEDCO Capital REIT Fund

Saudi Economic and Development Securities Co. (SEDCO Capital), in its capacity as SEDCO Capital REIT Fund’s manager, signed, on July 27, an agreement to sell Atelier La Vie property in Jeddah for SAR 515 million, excluding real estate transaction tax and any sales-related fees.

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In a statement to Tadawul, the company said that the buyer paid a non-refundable deposit of SAR 5 million, with the remaining amount to be settled and the ownership transfer completed within 60 business days, extendable by written agreement between the parties.

The fund acquired the property in June 2023 for SAR 492.5 million. The transaction is expected to result in a gain of 4.57%, compared to the acquisition cost.

As of Dec. 31, 2024, the book value of the property stood at SAR 477.51 million, according to the latest audited financial statements. This indicates an anticipated capital gain of nearly 7.85%.

Since the acquisition, the property has generated total rental income of SAR 52.28 million as of Dec. 31, 2024, according to the latest audited financial statements.

The impact of the transaction, if completed, aligns with the fund’s strategy to provide multiple options that support its performance and financial position.

The funds will be used to target new acquisitions of high-quality, income-generating real estate assets, which will add value to the fund’s property portfolio. In addition, a portion of the sale proceeds

may be used to partially repay existing bank facilities, thereby reducing the financing burden.

The fund manager anticipates that the overall impact of this transaction, if completed, will be positive for the fund’s real estate portfolio, as well as its performance and results.

SEDCO Capital will announce any future developments in due course, the statement said.