Since the Capital Market Authority (CMA) announced the instructions for ETFs in October of last year 2016, the Saudi market has witnessed the listing of 8 income-generating real estate ETFs, which are closed and offered in a public offering that complies with Sharia standards and controls, and some of them achieved great success in subscription that exceeded the expected, and others achieved rewarding profits during short periods, which promises the future of this type of investment, in this special supplement we review some of the funds that have been listed.<\/p>\n
1 - Riyadh Fund plans to buy 3 properties worth SAR 1.1 billion<\/b><\/p>\n
Riyad REIT is the first Real Estate Investment Trust (REIT), which was listed last November, and its capital amounted at the time of listing\u00a0 <\/span>500 million riyals, and his investment portfolio consists of several properties with diverse uses located in Riyadh, Jeddah, Dammam, and Khobar.<\/p>\n The fund mainly aims to distribute periodic profits to unit holders at a rate of not less than 90% of the net realized profits, by owning income-generating commercial real estate assets, whether through leasing or direct operation. The fund practiced its investment activity achieving high profitability benefits, and acquired many strategic properties such as \u00abThe Residence\u00bb center, whose transaction amounted to 136.62 million riyals, with an area of 15 thousand square meters, and plans to purchase 3 properties in Riyadh and Jeddah for a total amount of approximately 1.1 billion riyals.<\/p>\n 2) Al Jazira Mawtan REIT: 75% of assets invested<\/b><\/p>\n The Capital Market Authority (CMA) has approved the offering, registration and listing of the units of \u00abAl Jazira Mowatan REIT\u00bb on the market as a real estate investment trust (REIT). The fund invests in real estate properties that generate periodic income and distributes at least 90 percent of net profits in cash to investors during the fund's operating period and once a year at a minimum during the third quarter of each year if the rent collection is completed.<\/p>\n The fund's strategy is to invest at least 75% of the total value of its assets as per the latest audited financial statements in the purchase of rental or leasable properties, and 11.8 million units have been offered for initial subscription<\/p>\n The fund primarily invests in Jeddah's Khumra warehouses, which are wholly owned by Al Jazeera Mawtan Real Estate Income Fund.<\/p>\n 3.\u00a0 <\/span>Jadwa REIT Al Haramain: Profits in 75 days<\/b><\/p>\n At the time of listing, the fund was oversubscribed by about SAR 4.53 billion, with about 5,800 subscribers, exceeding the planned 1257%,<\/p>\n The fund has been a great success, with profits from operations amounting to about 6.6 million riyals in less than 75 days\u00a0 <\/span>It will be distributed in cash to the owners of the fund's units for the period starting from the date of operation of the fund 16\/04\/2017 until 30\/06\/2017, and the number of units eligible for distribution: 66 million units, while the share of one unit is SAR 0.10.<\/p>\n 4.\u00a0 <\/span>Taaleem REIT : Working in Riyadh <\/b><\/p>\n The fund was listed on the stock market last May and Saudi Fransi Capital announced that the fund was oversubscribed by 1,890 TP3T, and the value of the subscription proceeds reached SAR 760.9 million, while the value of the units offered amounted to SAR 85.5 million.<\/p>\n Managed by Saudi Fransi Capital, the fund aims to provide investors with current income by investing in income-generating real estate assets located in the Kingdom, specifically Riyadh.<\/p>\n 5 - Al Maather REIT: Total subscription receipts of SAR 2.8 billion<\/b><\/p>\n Al Mather REIT was listed last June with a coverage ratio of 1520%, with gross subscription proceeds totaling SAR 2.8 billion.<\/p>\n The listing is the fifth listing of REITs in the Saudi market, and all of the fund's primary investments are located in Riyadh, but as a means of diversification, the fund may invest in the rest of the Kingdom, in addition to the possibility of investing a maximum of 25% of the fund's total asset value in real estate located outside the Kingdom of Saudi Arabia.<\/p>\n 6 - Musharaka REIT: 12 thousand subscribers<\/b><\/p>\n \u00abLast August, the Musharaka REIT succeeded in covering its shares by 1021 % and that the number of subscribers exceeded 12 thousand subscribers among individuals and financial institutions who pumped 3.8 billion riyals,\u00a0 <\/span>The fund manager will allocate 1000 units (minimum subscription) to each subscriber, and the remaining units will then be allocated on a pro-rata basis based on subscription applications and the total remaining units. The fund has been approved by an application submitted by Musharaka Capital and the units of Musharaka REIT will be offered in the market as a publicly traded real estate investment trust (REIT).<\/p>\n 7 - SAR 6.09 billion capital of Alinma Makkah Real Estate Fund<\/b><\/p>\n With a capital of 6.09 billion riyals, the Capital Market Authority (CMA) approved the public offering of the units of Alinma Makkah Real Estate Fund after an application submitted by Alinma Investment Company, provided that the duration of the fund is five years and can be extended for a similar period.<\/p>\n The fund's main objective is to acquire developed and income-generating properties in the hotel, hospitality and commercial centers sector in the holy city of Makkah, specifically located within the first phase of the Jabal Omar project next to the Grand Mosque. .<\/p>\n These assets will be leased back to Jabal Omar Development Company for 10 years with a return of SAR 540 million,\u00a0 <\/span>The fund's assets consist of:<\/p>\n -\u00a0 <\/span>Three hotels: Hilton Suites, Hyatt Regency, and Conrad.<\/p>\n -\u00a0 <\/span>The two commercial complexes (Hebron Market):\u00a0 <\/span>Two commercial complexes consisting of four floors per complex.<\/p>\n 8 - Property Fund <\/b>Gulf Real Estate REIT achieves SAR 3.95 billion<\/b><\/p>\n The total value of the Gulf Real Estate Ownership Fund REIT subscription, which took place last September, reached about 3.95 billion riyals and the number of subscribers reached about 27,844 thousand subscribers among individuals, institutions and investment funds, with a coverage ratio of 20 times.<\/p>\n The units will be allocated equally among all subscribers according to the total value of the offered units, which amounts to SAR 198.5 million.<\/p>\n The fund will seek to offer the opportunity to invest in a diversified investment portfolio in terms of asset quality and geographical distribution in three major cities in Riyadh, Jeddah and Dammam. The size of the fund is SAR 600 million and the value of total rentals from the assets targeted for acquisition is estimated at SAR 46.2 million per year, and the fund manager will distribute at least 90% of the rentals received to the unit holders.<\/p>","protected":false},"excerpt":{"rendered":" Reading time: <\/span> 4<\/span> Minutes<\/span><\/span>\u0648\u0645\u0646\u0630 \u0623\u0646 \u0623\u0639\u0644\u0646\u062a \u0647\u064a\u0626\u0629 \u0627\u0644\u0633\u0648\u0642 \u0627\u0644\u0645\u0627\u0644\u064a\u0629 \u0639\u0646 \u0627\u0644\u062a\u0639\u0644\u064a\u0645\u0627\u062a \u0627\u0644\u062e\u0627\u0635\u0629 \u0628\u0635\u0646\u0627\u062f\u064a\u0642 \u0627\u0644\u0627\u0633\u062a\u062b\u0645\u0627\u0631 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629 \u0627\u0644\u0645\u062a\u062f\u0627\u0648\u0644\u0629 \u0627\u0644\u062a\u064a \u0623\u0639\u0644\u0646\u062a\u0647\u0627 \u0647\u064a\u0626\u0629 \u0627\u0644\u0633\u0648\u0642 \u0627\u0644\u0645\u0627\u0644\u064a\u0629 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