SEDCO Capital has signed a purchase agreement to acquire an office complex in Riyadh for SAR 125.8 million, generating a projected annual return of 8.9%.

Information on the Target

The Saudi Economic and Development Securities Company (SEDCO Capital) has recently signed a purchase agreement for an office complex located in the Al Yasmin District of Riyadh. This acquisition follows an earlier announcement related to two non-binding memoranda of understanding to acquire four office complexes in the city. The property, with a net leasable area of 5,267 square meters, was acquired at a value of SAR 125,775,000 excluding any acquisition-related fees. It is currently leased to a government entity under a single-tenant lease contract.

The lease is expected to last for three years, generating an annual rental income of SAR 11,180,000. This produces a total return of 8.9% per annum, making the property a potentially lucrative addition to SEDCO Capital's real estate portfolio.

Industry Overview in Saudi Arabia

The real estate sector in Saudi Arabia has been experiencing significant growth, driven by the Kingdom’s ongoing economic diversification and urban development initiatives, particularly under