Riyadh – Mubasher: Al Rajhi real estate investment traded fund's (Al Rajhi REIT fund) initial public offering (IPO) will start on 1 January until 14 January 2018, said Al Rajhi Capital.
Subscription in the IPO will be available through Al Rajhi Bank’s website and Al Rajhi Capital investment centres at a minimum value of SAR 1,000 per subscriber, according to a statement.
The fund will offer 42.67 million shares at SAR 10 per share and the fund’s value will hit SAR 1.62 billion.
The fund aims to acquire or invest in the income-generating real estate, commercial, office, educational, and warehouses assets that are located in Saudi Arabia, with the exception of Makkah and Madinah.
The fund will be allocated for investing in developed, income-generating assets, to lease, and distribute at least 90% of the fund’s annual net profits in cash for shareholders on a semi-annual basis.
The fund’s initial portfolio consists of 13 high quality and income-generating real estate assets.
The fund’s assets are spanned over some of the Kingdom’s cities of which 54% for retailing sector, 12% for warehouses sector, 26% for offices, and 8% for education sector.
Subscription in the fund’s units will be available for Saudi citizens, the GCC nationalities, foreigners in the Kingdom, institutions, firms, investment funds, and Qualified Foreign Investors (QFIs).
