SEDCO Capital REIT eyes property acquisition worth SAR 900 mln in Riyadh, Eastern Province

SEDCO Capital REIT Fund is planning to acquire a real estate portfolio worth more than SAR 900 million, consisting of 10 developed income-generating assets in different areas between Riyadh and the Eastern Province.

The fund manager SEDCO Capital said in a bourse statement that the acquisition will be financed through a combination of cash and in-kind contributions by issuing new units to increase the fund’s capital and using financial leverage as per the terms and conditions.

SEDCO Capital expects a positive impact on the overall performance of the fund as the potential acquisition is part of its strategy to buy attractive income-generating assets.

The fund manager has already received the approval from the board of directors to increase capital and will now proceed to obtain required regulatory approvals, the statement added.

The targeted portfolio is owned by a group of unitholders of a private real estate fund managed by SEDCO Capital.

The fund manager will undertake the following measures prior to the acquisition:-

-Signing a memorandum of understanding (MoU) with the seller

-Conducting technical and legal due diligence

-Obtaining approvals from Tadawul, Capital Market Authority, and majority of the unitholders

SEDCO Capital will disclose any related developments in a timely manner, the statement further noted.