MEFIC REIT revises Jeddah, Makkah acquisition agreements

Logo of MEFIC REIT Fund

Middle East Financial Investment Co. (MEFIC Capital), the fund manager of MEFIC REIT Fund, announced amendments to three previously signed conditional memoranda of understanding (MoUs) related to the fund’s potential acquisition of two properties in Jeddah and Makkah, as well as a usufruct right to a property in Jazan.

In a statement to Tadawul, the fund manager said the parties to the Jeddah property sale and purchase agreement (SPA), signed in March 2026, agreed to amend certain provisions. The revised agreement changes the purchase consideration from an in-kind only payment to a mix of cash and in-kind, subject to the fund manager fully covering the cash component of the additional unit offering.

The long-stop date was extended to Oct. 22, 2026, or any other date agreed in writing, and a new condition was added requiring full subscription to the additional cash unit issuance related to the real estate assets.

For the Makkah property, the parties agreed to amend the land SPA to extend the long-stop date to Oct. 22, 2026, or to any other date agreed in writing.

Regarding the Jazan property, the fund manager and the potential seller agreed to extend the MoU for 90 business days until Oct. 22, with the option to renew by written agreement, to complete the evaluation of acquiring a usufruct right over a 32,290 square meters property in Jazan.

MEFIC Capital said the completion of the transactions and the resulting increase in the fund’s total asset value are expected to positively impact the fund.

According to Argaam data, MEFIC Capital announced in November 2025 that it signed three conditional MoUs with different sellers to explore the acquisition of two properties in Makkah and Jeddah and a usufruct right in a property in Jazan.

In March 2026, the fund signed two agreements to acquire the Jeddah and Makkah properties for SAR 815 million.