Jeddah, Saudi Arabia: SEDCO Capital, a global Shariah-compliant and ESG-led asset management and investment advisory firm (or “the Firm”) has successfully exited its SEDCO Capital Built-to-Suit Real Estate Fund I (or “the Fund”), delivering a 41% net return on invested capital.
The Fund commenced operations in mid-2018, acquiring two education- zoned plots – in Jeddah’s Al-Shati District – to develop two educational campuses (on a Built-To-Suit basis) for girls and boys (“the Properties”) to be operated by Al-Yusr International School Company (“the Tenant”).
Following growing market interest in acquiring the Properties, the Fund’s Board approved their divestment in line with the Fund’s exit strategy. SEDCO Capital will subsequently liquidate the Fund as planned after completing regulatory, legal, and administrative proceedings.
Post liquidation, the Fund is expected to achieve a net internal rate of return (net IRR) of 8.25% and an equity multiple of 1.41x for its investors in the form of dividends and capital gain distribution. The returns are net of fees and expenses.
Samer Abu Aker, CEO of SEDCO Capital, said: “The exit of this special purpose fund extends SEDCO Capital’s strong track record of delivery. Our global real estate investment team, which manages approximately one third of SEDCO Capital’s total AUMs, identified an attractive opportunity, raised capital alongside the business development team, developed a high-quality real estate asset, and concluded a successful divestment. In the process, we delivered attractive returns for our investors. We look forward to leveraging our expertise in real estate sub-sectors to launch similar funds in the future.”
The development of the two educational campuses was conducted in alignment with high standards set by the Ministry of Education, the building regulations of the Jeddah Municipality, built-to-suit real estate best practice, and integrated ESG and LEED principles.
About SEDCO Capital
SEDCO Capital is a global, Shariah-compliant, and ESG-led asset management and investment advisory firm. Our investment philosophy is underpinned by three Ps: principles, partnership, and performance. We provide clients with investment solutions through a dynamic asset allocation process across diversified asset classes that deliver strong risk-adjusted returns. By adopting a global view to investing while looking through the lens of our proprietary Prudent Ethical Investment (PEI) approach, an integration of Shariah-compliant and Responsible Investment principles, we provide our clients with unparalleled global access to investments across developed and emerging markets, including Saudi Arabia, in alignment with their investment objectives. In 2014 we proudly became the first Saudi company and the world’s first Shariah-compliant asset manager to become a signatory to the UN Principles of Responsible Investment (UNPRI). We continue to be recognized for our commitment to responsible investments. SEDCO Capital oversees more than $6.3 billion in total assets under management (AUM) and is headquartered in Jeddah with offices in Riyadh, Dubai, London, and Luxembourg. SEDCO Capital is licensed by the Capital Market Authority (License No. 11157-37). The Firm’s headquarters is in South Tower, Red Sea Mall, King Abdulaziz (Malik) Road, PO Box 13396 Jeddah 21491, Saudi Arabia. Find out more at www.sedcocapital.com.
