Supplementary Announcement by Middle East Financial Investment Company (MEFIC Capital) Regarding a Specific Event of MEFIC REIT Fund. – Mefic Capital

Supplementary Announcement by Middle East Financial Investment Company (MEFIC Capital) Regarding a Specific Event of MEFIC REIT Fund.

Item	Clarification
Introduction	In continuation of the announcement by Middle East Financial Investment Company (“MEFIC Capital”) in its capacity as the fund manager of the MEFIC REIT Fund (the “Fund”), published on 10/01/1448 AH corresponding to 25/06/2026 AD, which included the announcement of the Fund Board of Directors’ approval to increase the total value of the Fund’s assets.
Date of the previous announcement on Saudi Exchange (Tadawul) website	10/01/1448 AH, corresponding to 25/06/2026 AD
Link of the previous announcement on Saudi Exchange (Tadawul) website	Click here
Change Occurred	MEFIC Capital, in its capacity as the fund manager, would like to announce to the unit holders the following: 1- Makkah Al-Mukarramah Property: Negotiations with the seller of the property located in Makkah Al-Mukarramah, consisting of a plot of land subject to real estate development with a total area of approximately thirty-six thousand and one square meters ($36,000.01m2) (“Makkah Al-Mukarramah Property”), have been concluded. These negotiations resulted in an agreement with the seller to reduce the acquisition value of Makkah Al-Mukarramah Property to 302,000,000, excluding real estate transaction tax. Compared to the previous acquisition value of 355,000,000, excluding real estate transaction tax. This will have a positive impact on the Fund’s financial position and total asset value. Funding of the Acquisition Value of Makkah Al-Mukarramah property will be settled by issuing in-kind units to the seller amounting to 302,000,000. 2- Amendment of the Sale and Purchase Agreements: An agreement has been reached with the sellers of the two properties in Jeddah and Makkah Al-Mukarramah to amend the relevant sale and purchase agreements as follows: A- Makkah Al-Mukarramah Property: With reference to the land sale and purchase agreement—which will be subject to real estate development—relating to Makkah Al-Mukarramah property, signed on 24/09/1447 AH corresponding to 13/03/2026 AD (“Makkah Agreement”), and the first amendment agreement of Makkah Agreement signed between the parties of Makkah Agreement on 03/01/1448 AH corresponding to 18/06/2026 AD (the “First Amendment Agreement of Makkah Al-Mukarramah Property”); the parties of Makkah Agreement have agreed to amend certain provisions thereof pursuant to the second amendment agreement of Makkah Agreement, signed on 28/03/1448 AH corresponding to 10/09/2026 AD (the “Second Amendment Agreement of Makkah Al-Mukarramah Property”). Pursuant to the Second Amendment Agreement of Makkah Al-Mukarramah Property, the purchase price and its payment method have been amended to reflect the final agreed-upon proportion of units to be issued in-kind to the seller. B- Jeddah Property: With reference to the real estate asset sale and purchase agreement relating to the property located in the city of Jeddah, signed on 24/09/1447 AH corresponding to 13/03/2026 AD (“Jeddah Agreement”), and the first amendment agreement to Jeddah Agreement signed between the parties of Jeddah Agreement on 03/01/1448 AH corresponding to 18/06/2026 AD (the “First Amendment Agreement of Jeddah Property”); the parties of Jeddah Agreement have agreed to amend certain provisions thereof pursuant to the second amendment agreement of Jeddah Agreement, signed on 28/03/1448 AH corresponding to 10/09/2026 AD (the “Second Amendment Agreement of Jeddah Property”). Pursuant to the Second Amendment Agreement of Jeddah Property, the payment method of the purchase price was amended by reducing the cash consideration percentage and increasing the in-kind consideration percentage to reflect the final agreed-upon proportion of units to be issued in-kind to the seller, in addition to updating the cash consideration due to the seller for the acquisition of Jeddah Property. 3- The Fund Board of Directors approved to increase the total value of the Fund’s assets: The approval of the Fund Board of Directors was issued on 28/03/1448 AH corresponding to 10/09/2026 AD, to increase the total value of the Fund’s assets through the acquisition of additional real estate assets in exchange for the final agreed-upon ratios, as follows: A- Makkah Al-Mukarramah Property: Acquiring the ownership of the Makkah Al-Mukarramah property for a total value of 302,000,000, excluding real estate transaction tax, to be funded by issuing in-kind units to the seller in the amount of 302,000,000. B- Jeddah Property: Acquiring the ownership of a developed, income-generating commercial complex (center) located in the city of Jeddah, with a total area estimated at sixty-six thousand, five hundred and eighty-eight and fifty square centimeters (66,588.5 sq m2), for a total value of 460,000,000, excluding real estate transaction tax, to be settled by issuing in-kind units to the seller in the amount of 367,750,000. In addition to a cash consideration of 92,250,000, provided that the cash consideration is funded from the proceeds of issuing cash units to investors in the amount of 101,136,450. The increase in the total value of the Fund’s assets will amount 770,886,450, through the acquisition of the real estate assets mentioned above in exchange for the issuance of in-kind and cash units, after obtaining the necessary approvals for the acquisition of the additional real estate assets. The procedures for increasing the total value of the Fund’s assets require obtaining the approval of both the Capital Market Authority and the Fund unitholders, as well as any other regulatory requirements, in accordance with the Fund’s Terms and Conditions and within the framework of the process to increase the total value of the Fund’s assets.
The resulting impact of the changes	MEFIC Capital expects there will be a positive impact on the Fund upon the completion of the transaction and the increase in the total value of the Fund’s assets.
Additional Information	MEFIC Capital will announce any subsequent developments in due course, noting that the increase in the total value of the Fund’s assets is subject to the approvals of the Capital Market Authority, the Saudi Exchange (“Tadawul”), and the Fund unitholders.

If you have any questions or require further assistance, contact us today.

Contact Us

error: Content is protected !!

This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.