SICO Saudi REIT leases 3 hotel towers for SAR 9.13 mln

Logo of SICO Saudi REIT Fund

SICO Saudi REIT Fund announced the leasing of Makkah’s Eskan Tower 4, Eskan Tower 5 and Eskan Tower 6 hotel properties to Jeddah-based hospitality firm MORO Global Co., at a total rental value of SAR 9.13 million, SICO Capital, the fund manager, said in a statement to Tadawul today, March 26.

The lease contracts will expire on Dec. 31, 2023. This will allow the fund manager to revisit the rental value of these properties before the start of next year’s Ramadan and Hajj seasons, based on the prevailing market conditions at the time and as per the interest of unitholders.

The move will impact positively on SICO Saudi REIT, given that the earlier lease contract for Eskan Tower 5 expired on Dec. 26, 2021, while those for Eskan Tower 4 and Eskan Tower 6 ended on Dec. 26, 2022.