SEDCO Capital REIT Unit to Increase total Asset Value by SR702mln

SEDCO Capital REIT company’s unitholders, are set to vote, in December, to increase its total asset value, by SR702mln.

It is an affiliate of the Saudi Economic and Development Company for Securities (SEDCO Capital).

The company, since, have made public, the terms and conditions related to the increase.

SEDCO Capital has invited the unit unitholders of the SEDCO Capital REIT Fund to attend a meeting, to be held through modern technology means, using the “Tadawulati” system, in order to ensure the safety of unitholders, in the financial market, and, in line with the precautionary measures of the Coronavirus, at 6 pm 02/12/2021, to discuss the following agenda:

1. Review a summary of the portfolio to be acquired.
2. Clarify the allocation mechanism.

The entire in-kind 32,500,000 units of the additional portfolio, will be allocated to the unitholders, subject to the acquisition, in exchange for the in-kind contribution to the additional offering.

Regarding monetary units, they will be allocated according to the following:

The monetary units offered are first allocated to the fund’s unitholders, who are registered on the day of the unit holders meeting, designated to approve the increase in the total value of the fund’s assets.

Allocation maximum shall be in proportion to each unit, on the day of the meeting designated to approve the increase, in the total asset value of the fund.

Allocating 20% ​​of the rest to institutional investors.

In the event that it is not covered by them; the remaining additional monetary units (if any) shall then be allocated to the rest of the registered and unregistered investors, on the day of the meeting of the unitholders designated to approve the increase, in the total value of the fund’s assets.

1. Clarify the impact of the additional unit pricing mechanism, on the cost of the fund and the compensation for the co-unitholders, in kind.
2. Clarify the conflict of interest of the fund manager in this transaction.

Note that the voting items will be as follows:

1. To vote on increasing the total value of assets in the amount of (SR701,951,750) by offering additional units (in kind and cash) with the aim of acquiring the portfolio of SEDCO Capital Real Estate Income Fund 2, which is a real estate portfolio, consisting of eight developed, constructed and income-generating properties, in different sectors, situated in Riyadh and the eastern region, and managed by the fund manager, who is a related party.
2. Vote on the Supplementary Appendix to the Fund’s Terms and Conditions, published on 11/18/2021, which was prepared primarily to reflect the increase in the total value of the Fund’s assets.

The supplementary appendix to the terms and conditions can be found via the following link:

Note that the amended terms and conditions will be sufficiently made available, in advance of the date of the meeting.

For the validity of this meeting, the presence of a number of unitholders, who own at least 51% of the value of the units registered, at the Securities Depository Center (Depository Center), at the end of the trading session preceding the meeting of the General Assembly.

Electronic voting for unitholders registered on the “Tadawulati” services website on the assembly’s articles, will start on Sunday 11/28/2021, starting from 10:00, in the morning, until the end of the assembly.

Registration and voting on the “Tadawulati” website will be free for all unitholders, using the following link: https://login.tadawulaty.com.sa/ir/

Note that the right to register attendance, at the assembly meeting, ends at the time of the assembly, and the right to vote on the assembly’s items for the attendees, ends at the end of the meeting.

Accordingly, the fund manager hopes that all unitholders will register in “Tadawulati” services, to participate and vote, remotely, on the assembly’s items.

In the event of an inquiry or to ask questions related to the association’s items, we hope to contact customer service by phone at +966126906555 or by e-mail: info@sedcocapital.com