Musharaka Capital, licensed by the Capital Market Authority (CMA) to underwrite Saudi Arabia's first income-generating real estate fund, has commenced a sixty-day offering.
Musharaka Capital has launched its first income-generating real estate fund in Saudi Arabia.
In a press conference in Khobar, recently, the company's CEO Ibrahim Al-Assaf confirmed that the fund is open to citizens, residents and citizens of GCC countries, noting that the fund aims to invest in fixed income real estate with a minimum subscription limit of 20 thousand riyals for individuals and 100 thousand riyals for companies.
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Al-Assaf pointed out 9 facts about the new fund: the size of the offering is 700 million riyals, the start of business when raising 200 million, the investment period is 7 years, which can be increased for 2 years, targeting 5 real estate sectors. Its business is concentrated in Riyadh, Sharqiya, and Jeddah. 40 % investment ceiling in each type of real estate identified in its strategy not to invest in properties whose development, maintenance, and rehabilitation costs more than 15 % of its value. In addition, the works are subject to direct supervision by the fund manager to preserve the rights of shareholders, and the fund's performance will not be affected by the imposition of real estate fees on white lands.
