SEDCO Capital REIT signs SAR 135M deal to acquire office complex in Riyadh

SEDCO Capital REIT Fund’s board of directors approved the signing of a purchase agreement and the completion of the acquisition of one of the properties referenced in two non-binding memoranda of understanding (MoUs) to acquire four office complexes in Riyadh.

The agreement was signed on July 6, 2025, SEDCO Capital, in its capacity as the fund’s manager, announced.

In a statement, the company said the acquired property is an office complex located on King Abdulaziz Road in the Al-Yasmeen district of Riyadh, with a net leasable area of 5,420 square meters.

The acquisition value amounts to SAR 135 million (excluding any acquisition-related fees). The property is leased to a government entity under a single-tenant lease agreement for a term of five years, with an annual rental income of SAR 11.76 million, representing a gross yield of 8.71% per annum.

The company added that the deal was financed through facilities granted to the fund, noting that the impact of the acquisition is expected to be generally positive on the fund’s real estate portfolio as well as its performance and results.

According to data available with Argaam, SEDCO Capital had previously announced in last May the signing of two MoUs to acquire four office complexes in Riyadh.