SICO Saudi REIT Signs Agreement to Acquire Property in Riyadh for SAR448 mln

SICO Capital Company, as the fund manager of SICO Saudi REIT (the “Fund”), announced on Sunday the signing of an agreement to acquire a new property for the Fund, which is a commercial office property located in Hittin District in Riyadh, according to the following details:

1. The asset is located one of the most prestigious locations on Prince Turki bin Abdulaziz Al-Awwal Road at Hittin district in Riyadh.
2. The property is a high-end plaza, housing both a mix of upmarket Retail Food & Beverage outlets, Restaurants as well as commercial offices, the land area is 11,489.69 square meters, and the building area is 36,495 square meters.
3. The occupancy rate of the property is 100%, with a total rental income of SR31.5 million annually, and the property will start operating during the month of April of 2022.
4. The value of the property purchase is SR448 million, excluding real estate tax, brokerage fees 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 asset by SR148 million which makes up 33% of the property purchase value, and SR300 will be paid in cash through the bank facilities available to the fund.
5. The agreement is conditional on completing the due diligence work of the new real estate asset from a legal and technical point of view, in addition to obtaining the necessary approvals according to the regulatory requirements.

The fund manager expects the acquisition to have a positive impact on the fund, as it will add diversification to real estate activities and geographical distribution with an increase in the weight of the fund’s properties in the capital, Riyadh, and it is expected that there will be a positive impact on the fund’s returns.