SEDCO Capital REIT buys AED 158M educational complex in Dubai

Logo of SEDCO Capital REIT Fund

SEDCO Capital, manager of the SEDCO Capital REIT Fund, completed the acquisition of an income-generating educational complex in Dubai, UAE, for AED 158 million, excluding acquisition-related fees.

In a statement on Tadawul, SEDCO Capital said the property is a purpose-built, income-generating educational complex, with a total land area of approximately 36,690 square meters and a built-up area of around 18,250 sqm.

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The complex is leased to a single tenant on a long-term, net-of-operating-expenses basis. The operator is a well-established education provider in the region.

The 21-year lease carries an average annual rent of AED 14.2 million and an average yield of around 9%.

The transaction was financed through facilities extended to the REIT and is expected to enhance the fund’s real estate portfolio, performance, and returns.

In November 2023, SEDCO Capital REIT signed a memorandum of understanding (MoU) to acquire the asset for AED 160.5 million, with the MoU extended three times before closing.