The Clap
SEDCO Capital has signed a Sharia-compliant banking facility agreement, in its capacity as the manager of the SEDCO Capital REIT Fund (4344), with Bank AlJazira (1020), for SAR 1.72 billion.
The Deets
The facilities are divided into the following:
SAR 800 million riyals, to be used for the purpose of refinancing the currently withdrawn facilities.
SAR 375 million available to the fund manager to achieve the fund’s investment objectives.
An additional SAR 541 million will be issued after increasing the fund’s total assets and following the approval of the Capital Market Authority (CMA).
SEDCO Capital REIT
SEDCO Capital REIT is a close-ended real estate investment fund, compliant with Islamic Shariah regulations.
It operates in accordance with the Real Estate Investment Funds Regulations and the Regulations for Real Estate Investment Traded Funds, issued by the CMA.
Facilities
The company succeeded in obtaining a profit margin for the facilities that are around 30% lower than the current funding granted to the fund.
Why this Matters
SEDCO Capital expects the agreement to positively impact the performance of its fund due to a reduced profit margin for financing and an increased possibility of acquiring new real estate assets.
