Al Rajhi REIT IPO to begin January 1

Al Rajhi REIT Fund - Details

Fund structure                     

Close ended, Sharia-compliant REIT Fund

Offering period

Ten business days

Investment targets

Invest in developed properties that generate regular income

IPO amount

SAR 426.7 mln

Fund’s target size

SAR 1.621 bln

Value of in-kind subscriptions

SAR 795.3 mln

Total number of units following IPO

122.2 mln

Total assets following IPO

13

Weighted average of lease expiry period

7.2 years

Properties’ occupancy level

98.93 percent

Target net yield in 2018

6.16 percent

Lock-up Period

Al-Rajhi Capital (The Fund manager) owns 9.75 percent shareholding into the fund’s capital. This shareholding is subject to a two-year lock-up period from the date of listing (i.e. the Company cannot sell out this stake during the said period).

Management fee

0.80 percent annually of fund’s total value after expenses

Subscription fee

2 percent of the investment value (charged at the time of subscription)

Custody service fee

The fund will pay SAR 100,000 to the custodian on a quarterly basis

Financing

The fund manager can on behalf of the fund secure Sharia-compliant financing at 50 percent maximum of the total value of the fund’s assets

Minimum investment

SAR 1,000

Maximum investment

SAR 60 mln

Fund manager

Al Rajhi Capital

Custodian

KASB Capital

Fund term

99 years from the listing date, renewable upon the CMA approval

Cash distributions

90 percent of the fund’s income on a semi-annual basis

Receiving entities

Al Rajhi Bank website, Al Rajhi Capital investment centers

Fund trading

The trading method applicable on Tadawul