"MEFIC REIT" Extends Deadline for Jeddah and Makkah Deals to November 30

MEFIC Capital, the fund manager of MEFIC REIT, has extended the deadline for two sale and purchase agreements for two properties in Jeddah and Makkah to November 30, 2026, instead of the previously agreed deadline or any other date agreed upon in writing by both parties, according to a statement on Tadawul reported by Argaam.

Both parties signed the purchase agreements on March 13, 2026, and later agreed to amend certain terms under an amendment agreement signed on October 21, 2026.

Regarding the Jazan property, the fund manager stated that the memorandum of understanding (MoU) regarding the potential acquisition of usufruct rights for a property in Jazan expires today, October 22, and that both parties agreed not to renew it after failing to reach an agreement.

MEFIC Capital expects the transaction, upon completion and the resulting increase in the fund's total asset value, to have a positive impact on the fund. It clarified that increasing the total asset value is subject to the approval of the Capital Market Authority (CMA), the Saudi Exchange (Tadawul), and unit holders, adding that it will announce any subsequent developments in due course.

What do these terms mean?

Real Estate Investment Trust (REIT): A fund that invests in income-generating real estate and is traded on the stock exchange like shares, distributing a portion of its income to unit holders.

Deadline: The last agreed-upon date to complete a transaction; if it passes without completion, either party may withdraw according to the terms of the agreement.

Usufruct Right: The right to use and benefit from a property for a specified period without owning it, in exchange for agreed-upon financial compensation.