RIYADH: Saudi-based global asset management and investment advisory firm SEDCO Capital completed the exit of its Build-to-Suit Real Estate Fund I with a 41 percent net return to investors.
The company commenced operations of its fund in 2018 by acquiring plots in Jeddah to develop two educational campuses.
Following the growing market interest in acquiring the properties, the fund’s Board approved the exit strategy as SEDCO Capital will subsequently liquidate the fund as planned after completing regulatory, legal, and administrative proceedings.
“Our global real estate investment team, which manages approximately one-third of SEDCO Capital’s total AUMs, identified an attractive opportunity, raised capital alongside the business development team, developed a high-quality real estate asset, and concluded a successful divestment. In the process, we delivered attractive returns for our investors,” Samer Abu Aker, CEO of SEDCO Capital, said.
The fund is expected to achieve a net internal rate of return of 8.25 percent and an equity multiple of 1.41 for its investors in the form of dividends and capital gain distribution.
“The exit of this special purpose fund extends SEDCO Capital’s strong track record of delivery. We look forward to leveraging our expertise in real estate sub-sectors to launch similar funds in the future,” Abu Aker added.
The development of the two educational campuses was conducted in alignment with the standards set by the Ministry of Education, the building regulations of the Jeddah Municipality, and integrated environmental, social and governance, and sustainability principles.
