SEDCO Capital, a leading Saudi licenced asset manager announced the acquisition of seven quality real estate assets over the past 19 months on behalf of SEDCO Capital Real Estate Income Fund II ("SCREIF II"), bolstering the firm's realty portfolio in Saudi Arabia.
SEDCO Capital Real Estate Income Fund II is a Shariah-compliant, close-ended investment fund established in the Kingdom of Saudi Arabia under Article 4-B-4 of the Investment Funds Regulations and managed by SEDCO Capital as Fund Manager. The fund's objective is to invests in high quality income generating real estate assets in the main cities of the Kingdom of Saudi Arabia. The main purpose of investment of the Fund is to provide investors with a cash income with the possibility of a capital increase by investing in real estate assets in Saudi Arabia.
In-line with SEDCO Capital's commitment and strong belief in the strength of the Real Estate market in Saudi Arabia, SEDCO Capital on behalf of SEDCO Capital's Real Estate Income Fund II, acquired seven properties since its inception in November 2014, which included an anchored standalone Hyper Panda retail in Dammam as well as the adjacent land used for parking,Olya School in Riyadh, Dar Al Baraa School in Riyadh, an anchored standalone Extra Store in Dammam, Alhamra Plaza retail strip outlet in Riyadh and Irgah Plaza retail strip outlet in Riyadh.
The acquisitions collectively total SAR 473 million in purchase price for approximately 88,000 square meter of built up area across Riyadh and Dammam. This portfolio of assets benefits from a weighted average lease expiry of 16 years to credible and investment grade tenants.
Commenting on the acquisition, Hasan Al-Jabri, Chief Executive Officer of SEDCO Capital said, "Over the past five years, the SEDCO Capital Core/Core Plus Real Estate Strategy has demonstrated an impressive track record of adding value for its clients. Responding to increased demand from investors for commercial real estate investment opportunities, SEDCO Capital launched SCREIF II on 13th November 2014 and has steadily added to its holdings, accumulating a well-diversified portfolio. The success of the past five years has also led to the notable growth of the SEDCO Capital team, which now boasts four highly experienced members in real estate investment and asset management. "As our total assets under management reach the $5.2 billion mark," Hasan Al Jabri, CEO of SEDCO Capital, believes, "it is a testament to the confidence our clients have placed in our team and our approach."
SEDCO Capital's real-estate portfolio in Saudi Arabia has grown to include 15 assets under SEDCO Capital's two Real Estate Income Funds (SCREIF I and II) with a portfolio value exceeding SAR 1.1 billion.
Sherif Selim, Head of MENA Real Estate at SEDCO Capital said: SEDCO Capital has acquired two different types of properties being retail and education for SCREIF II that met our criteria of being stable, defensive, well located and income-producing. We have a healthy pipeline of assets that are either defensive by nature or structured defensively and we look forward to the deals we will close in the last three months of the year."
He also added "We have identified the Saudi real estate market in particular, as an attractive asset class for investors and our dedicated team offers funds, separate accounts and syndicated transactions across the full spectrum of real estate strategies. The team is also continuously looking for opportunities to deliver to investors attractive risk adjusted returns."