Saudi asset management company Alkhabeer Capital, headquartered in Jeddah, has commenced the subscription period for a second additional offering of its Alkhabeer REIT Fund, the company announced early this week.
The additional offering will help Alkhabeer REIT Fund achieve stable cash flows and make investment opportunities at the fund more attractive, the company said. Proceeds from the REIT offering will be used to acquire assets in the educational and industrial sectors, including Vision College for Education and Akun cold storage warehouses in Jeddah. This would take the total number of assets under the fund to 12.
SAUDI LOCALS, FOREIGN RESIDENTS AND QUALIFIED INSTITUTIONS CAN INVEST
The subscription period for the additional offering will commence for 15 working days, starting from 30 May 2021, until 17 June 2021. These dates correspond to 18 Shawwal 1442 and 7 Dhu Al-Qadah 1442 on the Islamic calendar.
With the second additional offering, Alkhabeer REIT Fund aims to grow its total assets under management by 19%, from SAR 1.73 billion to SAR 2.06 billion. For the offering, 38,037,835 additional units will be offered, of which 15,736,500 units will be made available for public subscription.
Additional shares are priced at SAR 9.03. Saudi locals, foreign residents and qualified institutions can invest in the fund through appointed receiving banks. Receiving banks include Al Jazira Capital, Al Rajhi Bank and Saudi National Bank. Additional shares are also available to clients of other banks through an online subscription system that can be found on the Alkhabeer Capital website.
SECOND ADDITIONAL OFFERING BY ALKHABEER REIT FUND
Alkhabeer REIT Fund is a close-ended real estate investment traded fund that is Sharia-compliant and publicly offered. The fund was listed in the Saudi stock exchange, Tadawul, in 2019. Its portfolio includes assets in the retail and industrial sectors, and offices, residential and educational properties. These are located in Jeddah, Riyadh and Tabuk.
The first additional offering of the Alkhabeer REIT Fund took place in 2020, with subscriptions opening in July. The offering was oversubscribed by 104%. The Fund’s assets under management grew by 70% after the offering, the company said, reaching SAR 1.7 billion.
Earlier this year, Alkhabeer Capital gained the approval of Saudi market regulator Capital Market Authority to increase the total asset value of the Alkhabeer REIT Fund through key acquisitions. Both Vision College for Education and Akun warehouses were part of the strategic outlook. Industrial and logistical assets of three factories located in Riyadh were also considered.
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