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Al Rajhi REIT

Al Rajhi REIT IPO

Al Rajhi REIT Fund is considered as the first real estate investment traded fund offered by Al Rajhi Capital as it provides investors with the opportunity to invest in real estate market. The extensive experience of Al Rajhi Capital in real estate sector has its positive impact over the performance of Al Rajhi REIT fund whose diversified portfolio is comprised of properties distributed across multiple sectors inside the Kingdom.

Terms & Conditions Portfolio 
Unit Price
8.9 SAR
Minimum Investment Amount
1 Unit
Periodic Dividends
Will be paid on annual basis
Offering Size
SR1,012,380,710
Offering Period
from 17/05/2023 to 30/05/2023
Receiving Entities
Al Rajhi Bank, Riyad Bank, Alinma Bank, Arab National Bank, Al Jazira Capital, Saudi Fransi Banque
Key Information about AlRajhi REIT IPO
Unit Price 8.9
Minimum Investment Amount 1 Unit
Periodic Dividends Will be paid on annual basis
Offering Size SR1,012,380,710
Offering Period from 17/05/2023 to 30/05/2023
Receiving Entities Al Rajhi Bank, Riyad Bank, Alinma Bank, Arab National Bank, Al Jazira Capital, Saudi Fransi Banque
 

FAQs



1.Who is the fund manager?
Al Rajhi Capital, a Saudi closed joint stock company (Commercial Registration No.: 1010241681), with paid up capital of SAR 500,000,000, licensed by the Capital Market Authority in the Kingdom of Saudi Arabia under License No. 07068-37 dated 25/06/2007, telephone: +9668001245858, Email: CustomerService@Alrajhi-Capital.com. The company started its activity on 03/18/2008, providing asset management, brokerage and investment banking services through (Dealing as Principal, Agent and Underwriter, Managing and operating Investment Funds and Discretionary Portfolios, in addition to Arranging, Advising and Custody).
 
2.What is the fund’s type?
Al Rajhi REIT Fund is a real estate investment traded closed fund (REIT) whose diversified portfolio is comprised of properties distributed across multiple sectors inside the Kingdom.
 
3.How long is the fund period?
99-year term since its inception.
 
4.What is the size of the investment fund before and after offering?
The fund's assets amounted to 2,191,441,201 SR as of the end of 06/30/2022. It is expected that the size of the fund's assets after the completion of the offering and the increase in the fund's assets will be approximately 3,203,821,911 SR.
 
5.What is the total amount for subscription?
The total amount for subscription by public is 1,012,380,710 SR, yet the fund manager may subscribe in, to maintain his percentage of ownership in the fund.
 
6.What is the objective of the Fund?
To realize periodic cash dividends, for investors, generated from the fund investment in real estate assets inside and outside the Kingdom of Saudi Arabia. The fund also aims to grow the total value of the fund’s assets through:

 

  • (A)reinvesting the undistributed earnings (which is the remaining amount of the fund’s income after the distribution of at least 90% of the fund’s net profit as per the REIT Regulation, excluding real estate generated profits and other unitholders’ investments) and revenues generated from the sale of investments in real estate investment assets in the interest of the unitholders, provided that the exception period shall not exceed 6 months since the sale date. The fund manager shall, after the expiry of the exception period, distribute these dividends if they are not used or invested, following the distribution of at least 90 % of its net profit to the unitholders;
  • (B)the potential increase in the value of the fund’s assets which is resulting from long-term revenue improvements.
  • (C)better utilization of underutilized properties.
 
7.What categories are allowed to subscribe?

 

  • (A)Natural persons of Saudi nationality or the nationality of a member state of the Gulf Cooperation Council (GCC);
  • (B)Establishments, companies, investment funds and other legal entities existing in Saudi Arabia and other GCC states;
  • (C)Foreign residents in Saudi Arabia;
  • (D)Eligible foreign investors under the relevant organizing rules mentioned in the terms and conditions of the fund
  • (E)Other investors permitted by the CMA to possess securities listed on Tadawul.
 
9.What is the weighted average unexpired lease term (WAULT) of this fund?
Approximately from 7 years prior to offering to 8.5 years after offering to attain better perception for investors about the future cash flows with the scheduled escalation in rents.
 
10.When will the fund be offered for subscription, and for how long?
The offering period started from 17/05/2023 for 10 working days.
 
11.Is the fund entitled to credit facilities?
Yes, the fund is entitled to Sharia-Compliant facilities.
 
12.What is the mechanism of dividends?
Quarterly dividends.
 
13.What is the value of the unit price for the additional offering in Al Rajhi REIT Fund?
8.9 SR.
 
14.How much is the fund subscription fee?
No subscription fee for the second additional offering.
 
15.What is the mechanism for buying and selling units after being listed?
Cash holders may directly buy and sell units after being listed through their investment accounts via Tadawul.
 
16.What is the supervisory authority for the fund?
The fund is supervised by CMA.
 
17.What is the minimum amount for subscription in the fund?
1 unit is the minimum amount for subscription in the fund.
 
18.Is there an upper limit for subscription in the fund?
There is no maximum amount for subscription in the fund.
 
19.When will the unit allocation and the surplus refund be announced?
in 15 working days (max) starting from the end date of the offering period.
 
20.What channels through which investors may subscribe in the fund?
Individual investors may subscribe through Receiving Banks Channels (Al Rajhi Bank, Al Rajhi Capital, Riyad Bank, Alinma Bank, Arab National Bank, AlJazira Capital, Banque Saudi Fransi). On the other hand, Corporate investors, investment funds and investment portfolios may subscribe through one of the branches of Al-Rajhi Capital.
 
21.How much is the purchase price for each property?

 

  • Riyadh Avenue: 465,000,000 SR
  • Al Henaki Building: 465,000,000 SR
 
22.How much is the tax on real estate transactions?

 

  • Riyadh Avenue: 23,250,000 SR
  • Al Henaki Building: 23,250,000 SR
 
23.How much will be charged for commission rate?

 

  • Riyadh Avenue (%0.8): 3,720,000 SR
  • Al Henaki Building (%2.5): 11,625,000 SR
 
24.Does the Fund pay Zakat?
 
For more information regarding the Zakat, please Click Here
 
Disclaimer

We would like to draw your attention to the fact that any conflicting application form will be rejected and will be considered null and void. Neither the offering manager nor the service providers will be liable for any such claims.


Please make sure to fill out all required information fields correctly and accurately. Investors should carefully read the terms and conditions of the Fund before making any investment decision on the Fund. Attention should be given to investing in the Fund with certain risks that may not be suitable for all investors. Investors must be prepared to take risks associated with any investment in the Fund. The investor may also obtain financial advice from an authorized financial advisor with regard to his financial position and his objectives of investing in this fund. Al Rajhi Capital may subscribe in the offering of the additional Units as part of the process of increasing the total asset value of the Fund through the additional offering. Headquartered in Riyadh, Al Rajhi Capital is a Limited Liability Company organized and existing under the laws and regulations of Saudi Arabia and operates under the Authorized Persons Regulations with license number 07068-37 granted by the Capital Market Authority and provides financial and investment related services. Consideration must be given, that the previous performance is neither an indicator nor a guarantee for achieving returns in the future. Taking into account that investments in mutual fund are subjected to market fluctuations, and the value of units and their generated income may increase or decrease accordingly, resulting in partial or total loss. Also, the fees imposed on the funds such as subscription, performance and management fees may apply. Therefore, investors are advised to consider their personal and financial status and refer to professional experts in the field of investment and legal consultancy, prior to enrolling in any product or a particular fund. Al Rajhi Capital may invest in the fund or related securities. Al Rajhi Capital may have also provided within the previous 12 months signification advice or security business services to the issuer of the securities concerned or of a related security. The source of any indicative information concerning past performance is from Al Rajhi Capital, and such information can be confirmed by reviewing the respective factsheets made available on the company website (www.alrajhi-capital.com). The terms and conditions of every fund encompass detailed and specific information about the product and its risks. It is advisable to read and understand such information before entering into any agreement. Terms and conditions, factsheets and financial statements related to the fund can be obtained from the company website or any of our dedicated investment centres.


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