Alkhabeer REIT opens subscription to raise asset value today

The subscription period to increase the total asset value of Alkhabeer REIT Fund through public offering for investors will run from today, Sunday, July 19, through August 6, 2020.

On July 5, the unit holders approved increasing the total asset value of the fund by SAR 722.8 million through issuing additional units and securing extra Shariah-compliant financing.

The fund will offer 36.53 million units to raise its total asset value from SAR 984.7 million to SAR 1.707 billion, as follows:

-A total of 32.7 million units worth SAR 327.3 million will be offered in kind to sellers of new real estate assets, in consideration of their in-kind contribution.

-A total of 3.8 million units worth SAR 37.96 million will be offered in cash.

The move will bring up the fund’s total units to 102.97 million and raise its capital to SAR 1.029 billion.

Alkhabeer REIT Profile
Capital	SAR664.42 mln
Current number of units	66.44 mln units
Total assets value as of Dec. 31, 2019	SAR 984.71 mln
Withdrawn funding	SAR340.00 mln

Additional Offering Profile
Fund Capital after the additional offering	SAR1029.71 mln
Increase in Fund Capital	SAR365.29 mln
New number of units	102.97 mln units
Increase in number of units	36.53 mln units
Fund assets following the additional offering	SAR1707.52 mln
Increase in fund value	SAR722.80 mln
Withdrawn funding	SAR737.50 mln
Increase in withdrawn funding	SAR397.50 mln
Offering objective	Acquiring additional real estate assets
Number of additional units	36.53 mln units
Number of units offered for in-kind contributions	32.73 mln units
Number of units offered for cash contributions	3.79 mln units
Targeted offering price per unit	SAR 8.91
Total subscriptions value	SAR325.30 mln
The increase in capital nominal value	SAR365.29 mln
Targeted increase in total fund’s value	SAR722.80 mln
Eligible subscribers	All investors
Minimum subscription limit	SAR 500 (No maximum limit)
Allotment methodology	Monetary units to be allotted first to registered unit holders at the unit holders meeting day willing to subscribe to monetary units at a prorata basis. Remaining units, if any, will be allocated to other investors
Offering period	10 business days from July 19 to August 6, 2020
Additional offering period	Offering period could be extended for 15 business days after obtaining CMA approval

The fund aims to acquire three assets, namely Elegance Tower, AlFarabi Colleges building, as well as under-construction AlFarabi Colleges training building.

Details of New Real Estate Assets
Asset	Acquisition Value (SAR mln)	Net rental income (SAR mln)	Net yield (%)
Elegance Tower	414	30	7.02%
AlFarabi Colleges	210	16	7.38%
AlFarabi Colleges training building	65	6,50	9.71%
Total	706.23**	52.16	7.39%
	Property type	Development status	Building area (‘000 sqm)
Elegance Tower	Office	Developed	58,27
AlFarabi Colleges	Educational	Developed	44.11
AlFarabi Colleges training building	Educational	Under construction	48.77*

*One of the basement floors of an area of 11,300 sqm was not developed as per the license, which brings the total area to 37,450 sqm.

**Acquisition value without commission.

According to the data available on Argaam, the fund started trading on the Saudi Stock Exchange (Tadawul) on March 20, 2019.

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