SEDCO Capital REIT signs SAR 100.7M deal to sell Riyadh property

The Saudi Economic and Development Securities Company (SEDCO Capital), acting as manager of SEDCO Capital REIT, said on Dec. 29 it signed a contract to sell the Al Jazeera Residential Compound in Riyadh for SAR 100.75 million, excluding real estate transaction tax and other related fees.

 

The fund acquired the property in May 2018 for SAR 67.47 million, and the sale is expected to generate a 49% gain over the acquisition cost. The latest audited financial statements recorded the property’s book value at SAR 63.8 million as of June 30, 2025, reflecting expected gains of 55%. Total rental income from acquisition through June 30, 2025, reached SAR 53.29 million.

 

Including the sale value and rental income, total proceeds from the investment amount to approximately SAR 154 million, or 228% of the acquisition cost.

 

SEDCO Capital REIT said the transaction aligns with its strategy to maintain multiple options for enhancing fund performance and financial position. These include acquiring new high-quality, income-generating real estate assets and potentially using part of the sale proceeds to repay existing bank facilities, reducing financing costs.

 

The fund manager expects the transaction to have a positive impact on the fund’s performance and results once completed, noting that any material developments will be disclosed in due course.

 

According to Argaam data, the residential compound is located on Mashaja Bin Saud Street, Sulaymaniyah District of Riyadh, on a land area of 20,758 square meters. It was built in 1990 and consists of two floors comprising 26 villas and 26 apartments, with a total of 52 tenants.