Mulkia Gulf REIT debuts on Tadawul today

Mulkia Gulf REIT Profile

Fund

Mulkia Gulf REIT Fund, a Sharia compliant REIT fund.

Investment Purposes

Generating periodic income for investors through investing in income-generating real estate assets within Saudi Arabia and distributing no less than 90% of net profit to unit holders.

Fund Size

SAR 600 mln

Cash offering size

SAR 213.5 mln

Unit Price

SAR 10

Subscription Fees

2% to be deducted upon subscription

Management Fees

1%

Other fees

Other fees mentioned in the funds terms and conditions

Fund Manager

Mulkia Investment

Fund Duration

99 years from listing

Cash Dividend

Annual cash dividend for unit holders of no less than 90% of the fund’s net profit and at least once a year. To be distributed within 90 days from fiscal year end.

Fund Trading

Similar to trading of equity shares

Major Unit Holders

Unit holders

Units’ value (SAR mln)

Percent to total assets

Abdullatif Alissa Group Holding

121.5

20.25 %

Gulf Real Estate Co.

265.0

44.15 %

Fund manager

15.0

2.50 %

Public

198.5

33.10 %

Total

600.0

100 %

 Mulkia Gulf’s real estate portfolio

First Property

Name

Al Yasmeen residential building

Location

Al Yasmeen, Riyadh

Land Area

2,309m²

Building area

5,303m²

Number of floors

3.5

Components

41 apartments between 97m² and 152 m²

Age

4 years

Total acquisition cost

SAR 18.7 mln

Tenant

Almarai Co.

Lease date/ duration of contract 

From Nov. 21, 2015/ 5 years

Total rental value (during contract period)

SAR 7.25 mln

Annual rent

SAR 1.45

Second Property

Name

Industrial Commercial Technology Complex

Location

Al Faisaliah neighborhood, Riyadh

Land Area

45,749m²

Built-up area

36,554m²

Number of floors

1

Components

5 auto maintenance centers, two car showrooms and a spare parts center

Age

7 years

Acquisition cost

SAR 121.5 mln not including commission fees of SAR 1.22 mln

Block 6

Land Area

14,713m²

Built-up area

12,150m²

Tenant

Abdullatif Alissa Automotive Co. (AACO)

Lease date/ duration of contract 

From Jan. 1, 2017 until Dec. 31, 2021

Total rental value (during contract period)

SAR 10 mln

Annual rent

SAR 2 mln

Block 7A

Land Area

4,865m²

Built-up area

1,850m²

Tenant

Abdullatif Alissa Automotive Co. (AACO)

Lease date/ duration of contract 

From Jan. 1, 2017 until Dec. 31, 2021

Total rental value (during contract period)

SAR 3 mln

Annual rent

SAR 0.6 mln

Block 7B

Land Area

4,865m²

Built-up area

1,835m²

Tenant

AACO

Lease date/ duration of contract 

From Jan. 1, 2017 until Dec. 31, 2021

Total rental value (during contract period)

SAR 2 mln

Annual rent

SAR 0.4 mln

Block 9

Land Area

6,098m²

Built-up area

4,750m²

Tenant

 AACO

Lease date/ duration of contract 

From Jan. 1, 2017 until Dec. 31, 2021

Total rental value (during contract period)

SAR 4.77 mln

Annual rent

SAR 0.954 mln

Block 10

Land Area

6,730m²

Built-up area

5,233m²

Tenant

Mohamed Yusuf Naghi Motors

Lease date/ duration of contract 

From Jan. 1, 2017 until Dec. 31, 2021

Total rental value (during contract period)

SAR 5.45 mln

Annual rent

SAR 1.2 mln

Block 11

Land Area

7,341m²

Built-up area

5,800m²

Tenant

United Motors

Lease date/ duration of contract 

From July 8, 2012 until Dec. 31, 2022

Total rental value (during contract period)

SAR 7.83 mln

Annual rent

SAR 1.45 mln until 2018, SAR 1.6 for remaining years

Plot 24

Land Area

6,000m²

Built-up area

3,000m²

Tenant

Alissa Universal Motors

Lease date/ duration of contract 

From Jan. 1, 2017 until Dec. 31, 2021

Total rental value (during contract period)

SAR 8.35 mln

Annual rent

SAR 1.67 mln

Plot 25

Land Area

6,000m²

Built-up area

3,000m²

Tenant

Mohamed Yusuf Naghi Motors

Lease date/ duration of contract 

From Dec. 24, 2012 until Oct. 30, 2017

Total rental value (during contract period)

SAR 7.84 mln

Annual rent

SAR 1.75 mln for final year before renewing the contract

Third Property

Name

Dinar Commercial Building

Location

Jeddah

Land Area

4,761m²

Built-up area

14,900m²

Number of floors

4

Acquisition cost

SAR 124.5 mln not including commission fees of SAR 3.1mln

Tenant

Saba Real Estate Co.

Lease date/ duration of contract 

7 years from evacuating the building for the company

Total rental value (during contract period)

SAR 69.7 mln

Annual rent

SAR 9.96

Fourth Property

Name

West Avenue Building

Location

Dammam

Land Area

5,700m²

Built-up area

5,600m²

Number of floors

1

Acquisition cost

SAR 309 mln not including commission fees of SAR 3.1mln

Tenant

Gulf Real Estate Co.

Lease date/ duration of contract 

5 years from evacuating the building for the company when acquired by Gulf Real Estate REIT to maintain the fund’s assets for 20 years

Total rental value (during contract period)

SAR 123.5 mln

Annual rent

SAR 24.7

Expected rent income from Mulkia Gulf REIT Properties

Period

2018

2019

2020

Al Yasmeen Building

1.45

1.45

1.45

Industrial, Commercial Technology Complex

10.03

10.03

10.03

Dinar Building

9.96

9.96

9.96

West Avenue

24.72

24.72

24.72

Total rent contracts

46.16

46.16

46.16

Rent to acquisition cost

8%

Rent to fund size

7.7%

Performance of Saudi REITs Since Listing

REIT

Listing Price

Closing as of Nov. 2

Variation

Aljazira REIT

10.00

19.22

+92%

Taleem REIT

10.00

12.54

+25%

Jadwa Al Haramain

10.00

10.59

+6%

Riyad REIT

10.00

10.49

+5%

Al Ma’athar REIT

10.00

9.97

(0.3%)

Musharaka REIT

10.00

9.87

(1%)