Monday, December 25, 2017

Al Rajhi Capital plans $431m IPO for REIT

Al Rajhi Capital, one of the largest investment firms in Saudi Arabia, said its real estate investment trust (REIT) fund will be launching its initial public offering (IPO) from January 1 to 14.

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

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 (8 per cent).

As the fund manager, Al Rajhi Capital will be offering 42.67 million units at SR10 each. Subscription will be available through Al Rajhi Bank website and Al Rajhi Capital investment centres at a minimum value of SR1,000. With this Al Rajhi REIT will have a fund size of SR1.62 billion ($431 million).
The Sharia-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 region.

"The fund’s investment target is mainly developed, income-generating assets, and focus is also on leasing and distributing at least 90 per cent of the fund’s annual net income in cash over the fund term on a semi-annual basis," said a Al Rajhi Capital spokesman.

The IPO is open only to Saudi and GCC nationals besides the institutions, companies, and investment funds operating in the kingdom, along with qualified foreign investors (QFIs) and expats living in the kingdom, he added.-TradeArabia News Service

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