SEDCO Capital REIT opens subscription to raise asset value today

Logo of SEDCO Capital REIT Fund

The subscription period to increase the total asset value of SEDCO Capital REIT Fund through an additional offering for investors will run10 business days from today, May 1, through May 14, at SAR 8.64 apiece.

The fund aims to increase the value of its total assets by SAR 600 million assuming the maximum limit, with a potential SAR 300 million minimum limit.

On April 17, SEDCO Capital REIT Fund’s unitholders approved increasing total asset value by SAR 600 million through issuing additional units to acquire Atelier La Vie, an income-generating structurally developed real estate property in Jeddah, according to data compiled by Argaam.

The fund will use the offering proceeds to purchase the property for SAR 492.5 million, plus the SAR 24.62 million real estate transaction tax, as well as the offering fees.

Offer Details
Fund		SEDCO Capital REIT Fund
Market		Saudi Exchange (Tadawul)
Status		Listed
Fund manager		SEDCO Capital
Current capital at nominal value		SAR 1.17 bln
Target capital at nominal value		SAR 1.17 bln
Offer Type		Second phase of increasing the fund's asset value
Subscription price		SAR 8.64 apiece
Minimum cash subscription limit		SAR 300 mln
Number of additional units		34.72 mln
Maximum cash subscription limit		SAR 600 mln
Number of additional units		69.44 mln
Offer period		10 business days from May 1-14, 2023
Extension of the second additional offer period		5 business days
Allotment period		15 business days from the end of the second additional offer date maximum
Surplus Refunds		15 business days from the end of the second additional offer date maximum
Acquisition and ownership transfer of the second additional investment portfolio and listing of additional units		60 business days from the end of the second additional offer date maximum
Additional offer proceeds	Item		Value (SAR mln)
	Purchase of the real estate investment portfolio		492.50
	Real estate transaction tax		24.63
	Brokerage fees		14.16
	Acquisition and sale fees		--
	Cash in the fund		63.34
	Lead manager fees		2.69
	Receiving banks fees		1.84
	Legal advisor fees		0.26
	Fees of registration, listing and arrangement for unitholders meeting		0.59
	Total		600.00
Receiving banks	Al Rajhi Bank, AlJazira Bank, Saudi National Bank (SNB) and Riyad Bank

In December 2021, the fund’s unitholders approved increasing the total asset value by approximately SAR 702 million through offering additional units (cash or in-kind) to acquire SEDCO Capital Real Estate Income Fund II's real estate portfolio.

The latter’s real estate portfolio comprises eight income-generating structurally developed real estate properties in different sectors across Riyadh and the Eastern Province. The portfolio is managed by SEDCO Capital, which is considered a related party.

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