Monday 25, December 2017 by Jessica Combes

Al Rajhi REIT IPO to begin 1 January 2018

 

Al Rajhi Capital announced the initial public offering (IPO) period of Al Rajhi REIT Fund will run from 1 to 14 January 2018, the fund manager (Al Rajhi Capital) said in a statement.

 

The fund manager will offer 42.67 million units at SAR 10 each.

Subscription will be available through Al Rajhi Bank website and Al Rajhi Capital investment centres at a minimum value of SAR 1,000, and will have a fund size of SAR 1.62 billion, according to the fund manager.

The Shari'ah-compliant fund aims to acquire or invest in income generating commercial, office, and educational assets, as well as warehouses, which are mainly located in the Kingdom, except for Makkah and Madinah.

 The fund’s investment target is to invest in developed, income-generating assets, and to lease and distribute at least 90 per cent of the fund’s annual net income in cash over the fund term on a semi-annual basis, the statement by Al Rajhi Capital added.

Al Rajhi REIT’s preliminary portfolio comprises 13 high-quality assets that generate income at the end of January and July of every year.

The fund’s assets are spread across various sectors in the Kingdom, namely: retail (54 per cent), warehouses (12 per cent), offices (26 per cent) and education sector (eight per cent).

Eligible investors are Saudis, GCC nationals, foreigners residing in Kingdom, institutions, companies, and investment funds operating in the Kingdom, along with Qualified Foreign Investors (QFIs).

 

 

 

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