<SEDCO Capital, a leading Saudi real estate asset management company, has announced the commencement of the public offering of units of the SEDCO Capital Real Estate REIT ETF starting from Jumada I 8, 1439H, corresponding to January 24, 2018, until Jumada I 21, 1439H, corresponding to February 6, 2018 (After the Capital Market Authority's approval on December 4, 2017 to offer its units for public subscription, with the possibility of owning sectorally and geographically diversified properties starting from only SAR 500, which targets promising periodic returns by subscribing to SEDCO Capital REIT.

<Hassan Al Jabri, CEO of SEDCO Capital, explained that the offering comes in line with the promising data of the Kingdom's 2018 budget and the volume of development spending that exceeded expectations, and meets the large and growing demand for income-generating real estate products and the fact that society, with its predominantly youthful base He pointed out that SEDCO Capital REIT's investments include seven properties that are diversified in terms of their geographical distribution and the list of tenants from the government and private sectors with an operating ratio of more than 92%.

<Al Jabri added that the net return target for the next three years is 7 percent, through the acquisition of additional assets using full capital and financing, especially since the annual returns of the current real estate portfolio are about 6.1 percent per year before financing, which is considered a precedent in this field. At least 90 percent of the fund's net profits will be distributed to unitholders, as well as capital gains resulting from the sale of real estate assets if suitable opportunities arise, allowing the fund to reinvest them in additional assets for the benefit of unitholders.
Al Jabri said: “The launch of this fund comes at a time when the Saudi market is witnessing promising opportunities in light of the optimistic outlook for the results of the implementation of economic reforms within the Kingdom's Vision 2030, which aims to raise the efficiency of the economy and develop society in order to achieve the aspirations of the wise leadership towards urban prosperity. This step seeks to keep pace with the strategic plans, which aim to diversify the economy and develop its mechanisms, including the local real estate sector as one of the main axes.” “SEDCO Capital REIT's assets have been managed by SEDCO Capital for six years through a team of consultants specialized in real estate property management, which will also continue management and supervision during and after the fund's subscription process,“ Al Jabri added.