SEDCO Capital REIT board OKs Palm View complex purchase at SAR 650M

Logo of SEDCO Capital REIT Fund

SEDCO Capital, the manager of the SEDCO Capital REIT Fund, announced that the fund’s board of directors approved signing a purchase agreement and completing the acquisition of the Palm View office complex in Riyadh for SAR 650 million (excluding any acquisition-related fees).

​

For more news and details on M&As

The property is leased under a single-tenant agreement to Jadwa Al Basateen Real Estate Co., with an annual rent of SAR 55.55 million. The lease includes a 10% rent escalation starting from the sixth year.

Moreover, SEDCO Capital signed a 10-year property management agreement with Jadwa Al Basateen Real Estate, valued at SAR 3 million annually, with a 10% increase starting from the sixth year. Under the contract, the company will handle all operational responsibilities for the property.

The acquisition was financed through credit facilities granted to the fund.

A positive financial impact is expected to reflect on the fund’s real estate portfolio, as well as overall performance and results, the statement noted.

According to data compiled by Argaam, SEDCO Capital signed two non-binding memoranda of understanding in May to acquire four office complexes in Riyadh.