MEFIC REIT cuts total asset increase to SAR 770.9M

Logo of MEFIC REIT Fund

MEFIC Capital, the fund manager of MEFIC REIT, announced that the increase in the fund’s total asset value has been revised to SAR 770.89 million, from SAR 834.8 million.

The update came after reducing the acquisition consideration for the property in Makkah from SAR 355 million to SAR 302 million, and lowering the cash consideration for the acquisition of the property in Jeddah while increasing the in-kind consideration.

In a statement to Tadawul, the company said negotiations with the seller of the property in Makkah, consisting of a land plot to be developed, with a total area of approximately 36,000 square meters, had been completed. The negotiations resulted in an agreement with the seller to reduce the acquisition value of Makkah property to SAR 302 million, excluding real estate transaction tax, compared with the previous acquisition value of SAR 355 million, excluding real estate transaction tax.

This would have a positive impact on the fund’s financial position and total asset value, while the acquisition value of Makkah property will be covered through the issuance of in-kind units to the seller worth SAR 302 million, the statement added.

The fund manager also indicated that an agreement had been reached with the sellers of Jeddah and Makkah properties to amend the relevant sale and purchase agreements.

A- Makkah Property: With reference to the land sale and purchase agreement — under which the land will be subject to real estate development — relating to Makkah property and signed on March 13, 2026, and the first amendment agreement signed by the parties on June 18, 2026, the parties agreed to amend certain provisions under the second amendment agreement signed on Sept. 10, 2026. Under the second amendment agreement for Makkah property, the price and payment mechanism were amended to reflect the final agreed percentage of units to be issued in kind to the seller.

B- Jeddah Property: With reference to the real estate assets sale and purchase agreement (SPA) relating to the property located in Jeddah and signed on March 13, 2026, and the first amendment agreement signed by the parties on June 18, 2026, the parties agreed to amend certain provisions under the second amendment agreement signed on Sept. 10, 2026. Under the second amendment agreement for Jeddah property, the payment mechanism was amended by reducing the cash consideration and increasing the in-kind consideration to reflect the final agreed percentage of units to be issued in kind to the seller, in addition to updating the cash consideration payable to the seller for the acquisition of Jeddah property.

The company said the fund’s board approved on Sept. 10, 2026, an increase in the fund’s total asset value through the acquisition of the additional real estate assets for the final agreed consideration.

A- Makkah Property: Acquisition of ownership of the Makkah property for a total value of SAR 302 million, excluding real estate transaction tax, to be covered through the issuance of in-kind units to the seller worth SAR 302 million.

B- Jeddah Property: Acquisition of ownership of a developed, income-generating commercial complex located in Jeddah, with a total area of approximately 66,590 square meters, for a total value of SAR 460 million, excluding real estate transaction tax. The acquisition will be covered through the issuance of in-kind units to the seller worth SAR 267.75 million, in addition to a cash consideration of SAR 92.25 million, with the cash consideration to be financed from the proceeds of issuing cash units to investors worth SAR 101.14 million.

The fund manager noted that the increase in the fund’s total asset value will amount to SAR 770.89 million through the acquisition of the aforementioned real estate assets against the issuance of in-kind and cash units, subject to obtaining the necessary approvals for the acquisition of the additional real estate assets.

The procedures for increasing the fund’s total asset value require approval from the Capital Market Authority (CMA), the fund’s unitholders, Saudi Exchange (Tadawul) and any other regulatory requirements, in accordance with the fund’s terms and conditions and as part of the process to increase the fund’s total asset value.

MEFIC Capital expects the completion of the transaction and the increase in the fund’s total asset value to have a positive impact on the fund, noting that it will announce any subsequent developments in due course.