Al Rajhi REIT

Asset Management

 
Al Rajhi REIT Fund is Al Rajhi Capital’s first Real Estate Investment Traded Fund (REIT) offering investors exposure to the Real Estate Market. Al Rajhi REIT Fund leverages the company's extensive experience in real estate sector and comprises of a well-diversified portfolio of real estate properties spread across multiple sectors in the Kingdom. As a listed and traded instrument, Al Rajhi REIT Fund offers a convenient way for investors to access real estate market by collectively owning these real estate properties generating periodical rental income, and with a potential to benefit from long-term capital appreciation.
 
Some of the salient features of the Al Rajhi REIT Fund are highlighted below.
 
 
Why invest in Al Rajhi REIT?

 

 

  

 

Fund Structure
Close ended – Listed REIT Fund on Tadawul Stock Exchange
Minimum Investment Amount During Initial Public Offering
SAR 1,000
Maximum Investment Amount per Investor During Public Offering
SAR 60,000,000
Offering Period
The offering period will be (10) business days, from January 1, 2018 to January 14, 2018, which may be extended
Unit Par Value
SAR 10 per unit
Eligible Investors
Saudis, GCC nationals, and Non-Saudi Nationals residing in Kingdom, Saudi And GCC Institutions, Qualified Foreign Investors as permitted under QFI regulations of CMA
Initial Public Offering (IPO) Amount
SAR 426,701,300
No. of Units Offered to Public During IPO
42,670,130 units
Fund Capital
SAR 1,222,006,090
Total Target Size of the Fund
SAR 1,621,912,690
Value of In-Kind Subscription
SAR 795,304,790
Total No. of Units in the Fund After the Offering
122,200,609 units
Total No. of Assets in the Fund
14
Weighted Average Lease Expiry Period
7.2 years
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).
Properties’ Occupancy Level
98.93%
Targeted Net Yield in 2018
6.16%
Distribution Policy
90% of the fund’s net income will be distributed on a semi-annual basis
Management Fee
0.80% p.a. of the total fund value less expenses
Subscription Fee
2% of the investment value (charged at the time of subscription)
Summary of the Offering
Fund Structure Close ended – Listed REIT Fund on Tadawul Stock Exchange
Minimum Investment Amount During Initial Public Offering SAR 1,000
Maximum Investment Amount per Investor During Public Offering SAR 60,000,000
Offering Period The offering period will be (10) business days, from January 1, 2018 to January 14, 2018, which may be extended
Unit Par Value SAR 10 per unit
Eligible Investors
Saudis, GCC nationals, and Non-Saudi Nationals residing in Kingdom, Saudi And GCC Institutions,
Qualified Foreign Investors as permitted under QFI regulations of CMA
Initial Public Offering (IPO) Amount SAR 426,701,300
No. of Units Offered to Public During IPO 42,670,130 units
Fund Capital SAR 1,222,006,090
Total Target Size of the Fund SAR 1,621,912,690
Value of In-Kind Subscription
SAR 795,304,790
Total No. of Units in the Fund After the Offering 122,200,609 units
Total No. of Assets in the Fund 14
Weighted Average Lease Expiry Period 7.2 years
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).
Properties’ Occupancy Level 98.93%
Targeted Net Yield in 2018 6.16%
Distribution Policy 90% of the fund’s net income will be distributed on a semi-annual basis
Management Fee 0.80% p.a. of the total fund value less expenses
Subscription Fee 2% of the investment value (charged at the time of subscription)

For additional information please contact +966 92000 5856

Keep up with the latest updates from Al Rajhi Capital