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Middle East Financial Investment Company (MEFIC Capital), the manager of MEFIC REIT Fund, has agreed to acquire two properties in Jeddah and Makkah for SAR 815 million. The Jeddah property, spanning 66,600 square meters, will be purchased for SAR 460 million, while the Makkah land, designated for development, costs SAR 355 million. Both transactions require in-kind payments and are subject to approvals from the fund’s board, the Capital Market Authority (CMA), and unitholders. Additionally, MEFIC Capital extended a memorandum of understanding (MoU) for a usufruct right in Jazan for 60 business days. The deals are contingent on completing due diligence and regulatory compliance, with expected closures within 90 business days. The fund expects these acquisitions to positively impact its asset value and growth prospects.
The acquisitions highlight MEFIC REIT’s strategic expansion in Saudi real estate, a sector gaining momentum due to Vision 2030 initiatives. For traders, the transactions could boost investor confidence in the fund’s performance and diversification. The in-kind payment structure and regulatory dependencies may introduce delays, but successful execution could enhance the fund’s portfolio and yield potential. Market participants should monitor updates on approvals and the progress of due diligence processes.
For Saudi and Gulf investors, the expansion of MEFIC REIT aligns with regional trends of infrastructure and real estate development. The fund’s focus on high-potential areas like Jeddah and Makkah may attract capital inflows, supporting broader economic goals. Investors should watch for future announcements regarding the Jazan usufruct right extension and any additional property acquisitions that could further diversify the fund’s holdings.
