MEFIC REIT Fund’s board approves SAR 835m asset expansion in Jeddah, Makkah

MEFIC REIT
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Riyadh – Mubasher: Middle East Financial Investment Company (MEFIC Capital), the manager of the MEFIC REIT Fund, has announced that its Board of Directors has approved a significant increase in the fund’s total asset value.

The expansion, valued at approximately SAR 834.80 million, involves the acquisition of a commercial complex in Jeddah and a development site in Makkah.

This strategic move follows a series of preliminary agreements and marks a major step in the fund's growth strategy through a combination of cash and in-kind contributions.

The board’s decision, finalized on 25 June 2026, authorizes the acquisition of two primary real estate assets. The first is a developed, income-generating commercial complex located in Jeddah, spanning a total area of 66,588 square meters.

The purchase price for this property is set at SAR 460 million, excluding real estate disposal tax.

To facilitate this transaction, the fund will issue in-kind units to the seller valued at SAR 349.30 million, while the remaining SAR 110.70 million will be paid in cash. This cash component is expected to be financed through the issuance of new cash units to investors totaling SAR 130.50 million.

The second acquisition involves a land parcel designated for real estate development in the holy city of Makkah. This site covers an area of 36,000 square meters and is valued at SAR 355 million, excluding real estate disposal tax. The entirety of this acquisition will be covered by the issuance of in-kind units to the seller, representing a full equity-based transaction for the land.

This announcement serves as a formal follow-up to a timeline of disclosures that began in late 2025. MEFIC Capital initially entered into three conditional Memoranda of Understanding (MoUs) on 13 November 2025, to explore the acquisition of properties in Jeddah and Makkah and a usufruct right in Jazan.

Following subsequent extensions and negotiations announced in early 2026, the fund manager has now moved forward with the definitive purchase agreements for the Jeddah and Makkah assets.

MEFIC Capital has emphasized that the completion of these acquisitions and the associated capital increase are subject to several regulatory and administrative hurdles. These include obtaining the necessary approvals from the Capital Market Authority (CMA) and the Saudi Tadawul, as well as securing the consent of the REIT’s unitholders.

The process will be conducted in accordance with the fund’s terms and conditions and prevailing regulatory frameworks.

MEFIC Capital anticipates that the successful integration of these assets will have a positive financial impact on the fund’s performance and portfolio diversification.

While the Jeddah asset provides immediate income through its existing commercial operations, the Makkah site offers long-term growth potential through development. The fund manager has committed to providing further updates to the market as additional milestones are reached or regulatory approvals are granted.

The proposed expansion reflects a broader trend among Saudi REITs to scale their portfolios and diversify geographic exposure within the Kingdom’s major urban centers.

By utilizing a mix of cash and unit-based financing, MEFIC REIT aims to strengthen its balance sheet while incorporating high-value real estate assets into its existing holdings.

Source: Mubasher Source: {{details.article.source}}