SICO Saudi REIT announces termination of agreement to acquire office commercial property in Riyadh

SICO Capital, Fund Manager of SICO Saudi REIT Fund announced on Monday that the termination of the agreement to acquire an office commercial property located in the Hittin district of Riyadh, due to the unwillingness of the property owners to extend the agreement’s period, whereas the extension of the agreement’s period is crucial in order for the Fund Manager to fulfill all the acquisition’s conditions in a complete and compliant manner.
It is noteworthy that the property is a commercial complex that includes restaurants and cafes in addition to offices. The land area is 11,489.69 square meters, and the building area is 36,495 square meters. The property occupancy rate is 100%, with a total rental income of SAR 31.5 million annually, and the property will start operating during April 2022.
And the value of buying the property is SAR 448 million, not including the tax on real estate disposals pursuit and acquisition expenses. , the purchase of the property will be financed by increasing the value of the fund’s assets by accepting an in-kind contribution from the seller of the real estate asset in the amount of SAR 148 million , which constitutes 33% of the purchase value of the property, and an amount of SAR 300 million will be paid in cash through the bank facilities available to the fund.
This comes following the announcement of SICO Capital, Fund Manager of SICO Saudi REIT Fund, dated 20 March 2022, that is published on the Fund Manager’s website, as well as on the Saudi Exchange website regarding signing of an agreement to acquire a new property for the Fund.