MEFIC REIT to acquire Jeddah, Makkah properties for SAR 815M

MEFIC REIT also renewed the MoU on a usufruct right for a property in Jazan for 60 business days.

Middle East Financial Investment Company (MEFIC Capital), the fund manager of MEFIC REIT Fund, announced that it has reached agreements to acquire two properties in Jeddah and Makkah worth SAR 815 million, while extending a memorandum of understanding (MoU) to explore a potential usufruct right for a property in Jazan.

In a statement to Tadawul, the fund manager said it signed a sale and purchase agreement on March 13 to acquire a property in Jeddah with a total area of 66,600 square meters for SAR 460 million, with the consideration to be paid in-kind.

The transaction is expected to be completed within 90 business days, subject to extension by written agreement between the parties and the fulfillment of several conditions, including increasing the fund’s total assets through the issuance of additional units via in-kind contributions, which requires approvals from the fund’s board, the Capital Market Authority (CMA), and unitholders.

The agreement is also contingent on completing legal, technical, and financial due diligence on the asset and providing updated licenses, regulatory certificates, and lease agreements related to the property.

MEFIC Capital also signed on March 13 a sale and purchase agreement to acquire land in Makkah designated for development with a total area of 36,000 square meters for SAR 355 million, with the consideration likewise to be paid in kind.

The deal is expected to be completed within 90 business days, subject to extension by written agreement between the parties and to the completion of procedures to increase the fund’s total assets through additional unit issuance, alongside the necessary approvals from the fund’s board, the CMA, and unitholders.

The agreement also requires the completion of legal, technical, and financial due diligence on the land and the provision of updated regulatory licenses and certificates, including development and building permits.

The fund manager said it had also agreed to extend for 60 business days from March 13, the term of a MoU to study the potential acquisition of a usufruct right for a property in Jazan with a total area of 32,300 square meters, with the option to extend the term further by written agreement between the parties.

MEFIC Capital said it expects the completion of the transactions and the increase in the fund’s total asset value to have a positive impact on the fund, adding that it will disclose any further developments in due course.

According to Argaam data, MEFIC REIT Fund signed in November 2025 three conditional MoUs with different sellers for a period of 60 days to study the potential acquisition of two properties in Makkah and Jeddah, and a usufruct right over a property in Jazan.