Jeddah, Saudi Arabia, 14 March 2023: SEDCO Capital, a global Shariah-compliant and ESG-led asset management and investment advisory firm (or “the Firm”) has successfully exited its SEDCO Capital Built-to-Suit Real Estate Fund I (or “the Fund”), delivering a 41% net return on invested capital.
The Fund commenced operations in mid-2018, acquiring two education- zoned plots – in Jeddah’s Al-Shati District – to develop two educational campuses (on a Built-To-Suit basis) for girls and boys (“the Properties”) to be operated by Al-Yusr International School Company (“the Tenant”).
Following growing market interest in acquiring the Properties, the Fund’s Board approved their divestment in line with the Fund’s exit strategy. SEDCO Capital will subsequently liquidate the Fund as planned after completing regulatory, legal, and administrative proceedings.
Post liquidation, the Fund is expected to achieve a net internal rate of return (net IRR) of 8.25% and an equity multiple of 1.41x for its investors in the form of dividends and capital gain distribution. The returns are net of fees and expenses.
Samer Abu Aker, CEO of SEDCO Capital, said: “The exit of this special purpose fund extends SEDCO Capital’s strong track record of delivery. 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. We look forward to leveraging our expertise in real estate sub-sectors to launch similar funds in the future.”
The development of the two educational campuses was conducted in alignment with high standards set by the Ministry of Education, the building regulations of the Jeddah Municipality, built-to-suit real estate best practice, and integrated ESG and LEED principles.