Saudi Economic Development Company (SEDCO Capital), manager of the SEDCO Capital REIT fund, today announced the signing of a memorandum of understanding to acquire a diverse real estate portfolio located in several cities across the Kingdom from a single seller.

The company said in a statement on Tadawul that the expected value of the deal is SAR 750 million, noting that the acquisition value will be determined after completing the legal and technical due diligence and valuation of the properties.

The company explained that the targeted properties are fully developed, income-generating properties with a total land area of approximately 152,083 square meters and a total built-up area of approximately 142,260 square meters. The properties are distributed across several cities in the Kingdom, including Riyadh, Khobar, Dammam, Hafr Al-Batin, Al-Ahsa, and Abha, and include administrative and commercial properties with an average occupancy rate of 98.78% and an average lease term of 7 years.

The company indicated that if the deal is completed, it will be financed through the available cash in the fund and the facilities granted to the fund, in addition to the in-kind contribution from the seller for part of the property value. It noted that the agreement is conditional upon the completion of legal and technical due diligence within six months from the date of signing the agreement.

The fund manager expects the outcome of this event to have a generally positive impact on the fund's real estate portfolio and its performance and results, if the deal is completed. The company will announce any developments related to this matter in due course.