MEFIC Capital, acting as the fund manager for MEFIC REIT (TADWUL: 4344), announced a downward revision of its total asset value expansion plan to 770.89 million Riyals, down from the previously targeted 834.8 million Riyals. The adjustment stems from renegotiated acquisition terms for a development land plot in Mecca and a restructured cash-to-equity payment ratio for a commercial asset in Jeddah, pending regulatory approvals from the Capital Market Authority (CMA) and the Saudi Exchange (Tadawul).
The Bottom Line
- Asset Target Revised: Total fund asset value expansion scaled back to 770.89 million Riyals from the initial 834.8 million Riyals projection.
- Mecca Cost Reduction: The acquisition cost for the 36,000-square-meter Mecca development land dropped to 302 million Riyals, fully covered via in-kind unit issuance.
- Liquidity Restructuring: The Jeddah property acquisition was adjusted to feature a lower cash component of 92.25 million Riyals and a higher in-kind equity proportion, backed by a 101.14 million Riyal cash rights issue.
Recalibrating Real Estate Acquisition Valuations
According to official disclosures filed on the Saudi Exchange, MEFIC Capital concluded protracted negotiations with the vendor of the Mecca property—a 36,000-square-meter plot earmarked for real estate development. The revised purchase price fell to 302 million Riyals, excluding real estate transaction tax, marking a direct reduction from the 355 million Riyals agreed upon in initial March 2026 terms.
Here is the math. Under the second amendment signed on September 10, 2026, the entire 302 million Riyal valuation for the Mecca plot will be settled through the issuance of in-kind units to the seller.
Alongside the Mecca adjustment, the fund manager restructured the acquisition of a 66,590-square-meter developed, income-generating commercial complex in Jeddah. Valued at 460 million Riyals, the Jeddah transaction now requires 267.75 million Riyals in in-kind units and 92.25 million Riyals in cash.
| Asset Property | Original Valuation | Revised Valuation | Acquisition Structure |
|---|---|---|---|
| Mecca Development Land | 355 Million SAR | 302 Million SAR | In-Kind Units (302M SAR) |
| Jeddah Commercial Complex | 460 Million SAR | 460 Million SAR | 267.75M In-Kind + 92.25M Cash |
| Total Asset Expansion | 834.8 million SAR | 770.89 million SAR | Combined In-Kind and Cash Units |
Regulatory Roadmaps and Capital Structure Mechanics
The administrative pathway for expanding a Tadawul-listed real estate investment trust demands multi-tiered authorization. According to MEFIC Capital, the fund’s board of directors approved the updated acquisition matrix on September 10, 2026. However, execution remains strictly contingent upon securing clearances from the Capital Market Authority, Tadawul, and the affirmative vote of existing unitholders during a general assembly meeting.
To fund the cash obligations of the Jeddah transaction, the fund plans to issue cash units to investors aiming to raise 101.14 million Riyals. This capital-raising exercise is designed to cover the 92.25 million Riyal cash portion due to the Jeddah property vendor while absorbing associated transaction expenses.
Portfolio Yield Implications and Market Outlook
As the fund manager prepares documentation for regulatory submission, market participants are watching for the definitive timeline on unitholder voting. If approved, the 770.89 million Riyal expansion will permanently reshape the fund’s asset under management (AUM) baseline. MEFIC Capital has committed to releasing further disclosures as the regulatory review phases progress toward completion.
