SEDCO Capital REIT unitholders to vote on SAR 702 mln asset value increase on Dec. 2

Logo of SEDCO Capital REIT Fund

SEDCO Capital REIT Fund’s unitholders will vote on increasing the total asset value by approximately SAR 701.95 million, during the unitholders’ meeting, slated for Dec. 2, 2021, according to a bourse filing by fund manager, SEDCO Capital.

The assets will be increased as SEDCO will offer additional units (whether cash or in-kind) to acquire additional real estate assets from SEDCO Capital Real Estate Income Fund II and to pay the related expenses and costs.

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

E-voting will start on Sunday, Nov. 28, 2021 via Tadawulaty services.

Unitholders will also vote on the addendum of the fund’s terms and conditions, which was published on Nov. 18, to reflect the increase in total asset value.

The offering period will start on Dec. 12 -16, 2021, as follows:

A total of 32.5 million units will be allocated to the owners of the additional portfolio as in-kind contribution.

The cash units will be allocated first to the fund’s unitholders registered on the general assembly meeting date, up to the maximum ownership ratio of each unitholder.

The remaining 20% will be allocated to institutional investors. If not covered by institutional investors, the remaining cash units, if any, will be allocated to registered and unregistered investors on the general assembly meeting date.

The pricing mechanism of the additional units at the fund’s expense and conflict of interests in the deal will be explained, the statement concluded.