Al-Rajhi Financial Company plans to invest 1,621.9 million riyals through the Al-Rajhi REIT, with the fund manager intending to offer 42.67 million units at a subscription price of ten riyals per unit, starting January 1, 2018, with the offering continuing through the 14th of the same month.
Al Rajhi Financial “Al-Rajhi Financial” stated that the offering will be available to investors, who may begin submitting subscription requests during the offering period through authorized channels, namely Al-Rajhi Bank’s electronic channels and Al-Rajhi Financial’s investment centers, with a minimum subscription amount of 1,000 riyals.
Al Rajhi Capital said, that the fund’s investment objective is to invest in fully developed real estate properties capable of generating recurring income and rental revenue, and to distribute no less than 90 percent of the fund’s annual net profits in cash to unit holders during the fund’s term on a semi-annual.
The fund’s initial portfolio consists of 13 fully developed, income-generating real estate assets as of the end of January and July of each calendar year.
The Fund generally seeks to acquire or invest in income-generating commercial, office, educational, and warehouse real estate assets located primarily in Saudi Arabia, with the exception of Makkah and Madinah.
The Fund’s assets are distributed across a number of cities in Saudi Arabia and span various real estate sectors, including retail (54 percent), warehousing (12 percent), offices (26 percent), and education (1 percent).
Subscription to the units will be available only to the following categories: natural persons who are Saudi nationals or nationals of a Gulf Cooperation Council (GCC) member state; institutions, companies, investment funds, and other legal entities established in Saudi Arabia; foreigners residing in Saudi Arabia, and foreign investors eligible under the rules governing investment by qualified foreign financial institutions in securities.