SICO Saudi REIT announces updates on raising total asset value to buy commercial property

Logo of SICO Saudi REIT Fund

SICO Saudi REIT Fund obtained the approval of the Capital Market Authority (CMA) on the supplementary terms and conditions related to increasing the fund’s total asset value by SAR 485.3 million to acquire a commercial, office property in Hittin District, Riyadh.

In a statement to Tadawul, SICO Capital Co., the fund manager, expected the acquisition to have a positive impact on the fund, as it will further diversify its real estate activities and geographical distribution with an increase in the weight of the fund's properties in Riyadh. It is also expected to have a positive impact on the fund's returns.

An invitation will be announced to unitholders to vote on the decision to increase the fund’s total asset value and approve the supplementary terms and conditions, SICO Capital added.

SICO Saudi REIT Fund received on Sept. 27 the CMA’s approval to increase total asset value by issuing additional units for acquiring real estate assets, the market regulator said in a statement.

On March 20, SICO Saudi REIT signed an agreement to acquire a commercial property in Riyadh for SAR 448 million, excluding real estate tax, pursuit and acquisition expenses, Argaam earlier reported.

The agreement was extended several times, the last of which was on Sept. 13 for 14 business days.