SICO Saudi REIT: Execution orders to recover SAR 16M in rents, negative impact expected

Logo of SICO Saudi REIT

SICO Capital, the fund manager of SICO Saudi REIT, received notices of execution orders from Eskan Development and Investment Co. on April 18.

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Eskan, the seller and former tenant of the fund's assets (Eskan Towers 4, 5, and 6), issued the orders against Mashaar REIT Real Estate Co., a special-purpose vehicle holding the fund’s assets.

In a statement to Tadawul, the company said Eskan is seeking to recover SAR 15.99 million in rental payments for Eskan Towers 4 and 6, covering three years of contractual rent under the signed lease agreements, from Dec. 27, 2019, to Dec. 26, 2022.

The fund manager expects the event to have a negative impact, as it could adversely affect the fund’s liquidity and its ability to distribute dividends in the short term.

The effect disclosed in this announcement does not consider any further developments that may occur in the future.

Eskan Development owns 25.69%, or 14.7 million units, of the fund's capital, according to Argaam data.