Jeddah, Saudi Arabia — According to a Tadawul filing dated July 27, 2025, SEDCO Capital has signed a SAR 515 million sale and purchase agreement for the Atelier Lavie property in Jeddah. The deal, made on behalf of the SEDCO Capital REIT Fund, includes a SAR 5 million non-refundable deposit. The balance and title transfer are due within 60 business days, with an option to extend by mutual agreement.

The REIT originally acquired the property in June 2023 for SAR 492.5 million. December 31, 2024, the book value stood at SAR 477.51 million. This sale implies a 7.85% gain over book value and a 4.57% increase over the purchase price. The property generated SAR 52.28 million in rental income during the holding period.

Enhancing Capital Efficiency and Strategic Flexibility

This planned divestment supports SEDCO Capital REIT’s strategy to boost capital efficiency by reallocating funds into higher-performing assets. Additionally, it aims to reduce leverage through partial repayment of bank loans.

The fund manager stated that, once finalized, the deal would strengthen the REIT’s financial position. It would also enhance flexibility in asset management, helping the REIT adjust more easily to shifts in the Saudi real estate market.

Further updates will be shared as the transaction moves toward closing.

 

 

THE SAUDI STANDARD’S VIEW: SEDCO Capital REIT Sale Advances Portfolio Discipline and Market Maturity

The SEDCO Capital REIT Jeddah sale of Atelier Lavie for SAR 515 million reflects the growing sophistication of Saudi Arabia’s REIT sector. This transaction delivers a 7.85% gain over book value and aligns with the fund’s goal to optimize portfolio performance.

  • Originally acquired in 2023 for SAR 492.5 million, the asset delivered SAR 52.28 million in rental income and now achieves over 4.5% capital appreciation. This demonstrates effective asset selection and well-timed execution.
  • Reinvesting the proceeds in higher-yielding assets and using part of the funds to reduce debt supports Vision 2030’s aim to deepen capital markets. It also highlights a shift toward performance-based, transparent investment practices.
  • The move reflects the REIT’s active asset management strategy. Similar to global REIT models, decisions are clearly based on market conditions, tenant trends, and financing costs.
  • The successful exit from Atelier Lavie, a prime commercial asset in Jeddah, confirms growing investor recognition and liquidity in the local real estate market. Institutional-grade assets are becoming more attractive to regional and local investors alike.

The SEDCO Capital REIT Jeddah sale is more than a profitable divestment. It showcases strategic agility and a more mature REIT framework in the Kingdom. As fund managers adapt to market changes, they help build investor confidence and support Saudi Arabia’s goal of a diverse, high-performing financial ecosystem.

 

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