By: Mohamed Idris
Riyadh – Mubasher: Jadwa Investment encountered some problems in offering a new Real Estate Investment Traded Fund (REIT), the director of asset management at Jadwa said.
Haitham Alghannam added to Mubasher, on the sidelines of listing Jadwa Investment's REIT (Jadwa REIT Al Haramain), that the new REIT will not invest in Makkah and Madina, as the real estates in both cities will be included in REIT Al Haramain.
By that, risks will be distributed and opportunities will be provided for investors to invest in REITs, Alghannam noted, highlighting that the addition of real estates that add value to investors in the fund is one of REIT Al Haramain’s strategic plans.
Jadwa’s asset management director showed that the real estate addition will take place by increasing the capital of the fund through issuing a rights issue, providing the owners of the new real estates with tangible stakes, or through loans.
The duration of the rental contracts reaches 15 years with a possibility to increase the rental value from time to time.
The REIT’s subscription was covered 1,257% by 5,800 subscribers, recording SAR 4.5 billion in subscription proceeds.
Translated by: Sara Ghali
