SEDCO Capital receives court ruling on terminating Burj Hayat lease contract

17/12/2020 Argaam

SEDCO Capital, the fund manager of SEDCO Capital REIT Fund, said that a preliminary ruling was delivered by Jeddah General Court to terminate the lease contract signed with Dar Al-Masarat Al-Arabia Co. Ltd for Burj Hayat Hotel Riyadh.

 

This ruling is currently being appealed, SEDCO Capital said in a bourse filing.

 

Dar Al-Masarat Al-Arabia, the tenant, earlier filed a legal action to terminate the hotel lease contract, which expires on Dec. 9, 2024, claiming that the property has been underutilized due to the Riyadh Metro project and road closures in the surrounding area.

 

The fund is currently taking all necessary legal and regulatory measures to appeal the court ruling, in order to maintain the interest of unit holders. It will also disclose any developments duly in this respect.

 

The fund manager noted that it cannot currently assess the financial impact of the court ruling, since it is not final and the real estate has not been handed over to the fund.

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