Al Rajhi Capital announced the initial public offering (IPO) period of Al Rajhi REIT Fund will run from Jan. 1 to Jan. 14, the fund manager (Al Rajhi Capital) said in a statement on Sunday.
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 centers at a minimum value of SAR 1,000.
Al Rajhi REIT will have a fund size of SAR 1.62 billion, the fund manager said.
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.
“The fund’s investment target is to invest in developed, income-generating assets, and to lease and distribute at least 90 percent of the fund’s annual net income in cash over the fund term on a semi-annual basis,” 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 percent), warehouses (12 percent), offices (26 percent) and education sector (8 percent).
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).