Saudi-based global asset management firm SEDCO Capital said that its real estate trust fund is eyeing the acquisition of a property portfolio worth over 900 million Saudi riyals ($240 million).
The firm said in a stock exchange statement that the SEDCO Capital REIT Fund is eyeing a portfolio of ten developed properties located between the Eastern region and Riyadh.
The statement filed with Tadawul said the REIT plans to finance the acquisition through a combination of cash and in-kind contributions by issuing new units to increase the fund’s capital and using financial leverage as per the fund’s terms and conditions.
Additionally, the fund has received the board’s approval to increase its capital, the statement noted.
“The Fund Manager will proceed to obtain all required regulatory approvals; the Capital Market Authority, Tadawul and majority of the unitholders,” SEDCO Capital said in the statement.
The asset manager said that it expects the acquisition will have a positive impact on the overall performance of the fund.
(Writing by Nada Al Rifai firstname.lastname@example.org, editing by Anoop Menon.)
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