Jadwa Investment, a company specializing in investment management and investment advisory services and one of the largest real estate investment fund managers in the Kingdom of Saudi Arabia, announced today the launch of a secondary offering for the Jadwa Saudi REIT. The proceeds from the secondary offering will be used to complete the acquisition of Riyadh Boulevard, one of the most prominent commercial properties in northern Riyadh.
Jadwa REIT Saudi Arabia is a closed-end, publicly traded, Sharia-compliant real estate investment fund with a 99-year term and a current total asset value of 2.19 billion Saudi riyals. The fund aims to provide investors with a steady source of income through periodic dividend distributions by investing in high-quality real estate assets in the Kingdom’s major cities. The fund’s distributions have grown steadily over 14 quarters since its listing, with cumulative distributions since listing reaching 2.49 Saudi riyals per unit.
The total asset value of the Jadwa REIT Saudi Arabia Fund has increased by 370 million riyals (equivalent to 16.9%), bringing the fund’s value after the increase to 2.56 billion riyals. The acquisition of the Riyadh Boulevard property will enhance the fund’s asset diversification, as this property is considered one of the most diverse commercial complexes in northern Riyadh, featuring spaces dedicated to restaurants and cafes, a hotel, a sports club, and office space. The Riyadh Boulevard complex also has long-term lease agreements with numerous prestigious brands. Given that it is one of the main destinations for Riyadh residents as a shopping and entertainment hub, the purchase price of the property represents a unique opportunity for investors when compared to appraisals by certified appraisers. The property is expected to generate net rental income of 29.6 million riyals annually, equivalent to a net rental yield of 9.2%, which is an attractive return on investment given its prime location and standing.
For his part, Tariq Al-Sudairi, Managing Director and CEO of Jadwa Investment, said: "We are pleased to announce the additional offering of the Jadwa Saudi REIT, which reinforces our leading position as a real estate investor and REIT manager. We are also pleased to offer our current and prospective clients the opportunity to invest in the Jadwa Saudi REIT at an attractive price and gain exposure to high-quality real estate assets in the Kingdom’s major cities."
In accordance with the fund’s terms and conditions, the value of the investment and any income derived from it may increase, decrease, or be lost in full, and targeted and expected results are not guaranteed;and past performance is no guarantee of future results. All investors wishing to invest must make their decision in consultation with their financial and legal advisors and assess all risks involved in the investment. An investor’s investment in the fund constitutes acknowledgment that they have been informed of and accept the fund’s terms and conditions. The full text of the Fund’s terms and conditions and financial reports are available on the Fund Manager’s website (www.jadwa.com) or on the websites of the custodian banks, Banque Saudi Fransi and Riyad Bank.
