Saudi Alkhabeer Capital to list $266mln REIT fund

Saudi Arabia - Alkhabeer Capital, an asset manager specialized in alternative investments, announced that it has received the approval of the Capital Markets Authority (CMA) to publicly list its Shariah-compliant Alkhabeer REIT Fund with assets in excess of SR1 billion ($266.64 million) and an IPO size of SR237 million, equating to 24 percent of total fund assets.

 

The fund invests in seven income-generating real estate assets at prime locations in Riyadh, Jeddah and Tabuk.

 

The target returns of over nine percent per annum, distributed quarterly, are among the highest in comparison with other real estate investment traded funds listed on the Saudi stock exchange (Tadawul).

 

Ahmed Saud Ghouth, chief executive officer of Alkhabeer Capital, said: “Alkhabeer REIT is the product of Alkhabeer’s knowledge and expertise in the real estate investment field, domestically and globally, with its real estate investment portfolio exceeding SR3.6 billion as of Dec. 31, 2017, managed through 10 real estate funds holding assets and projects in the cities of Jeddah, Riyadh, Alkhobar and Makkah, as well as real estate property in the US and the UK.”

 

He said Alkhabeer REIT provides an attractive opportunity to institutional and individual investors to realize high-income yield. The fund’s subscription may be made through six receiving banks with a minimum subscription amount of SR500, without any subscription fees.

 

Ghouth added: “Alkhabeer Capital manages investment funds with assets of around SR4.7 billion as of Dec. 31 2017, mainly in real estate and private equity. Alkhabeer has an outstanding track record with extensive experience in investing in real estate opportunities catering to investor needs and maximizing returns in a changing economic landscape.”

 

Subscription in Alkhabeer REIT Units is scheduled to start on Nov. 11 and will continue until Nov. 29.

 

Prospective subscribers may apply through the following institutions: National Commercial Bank, Riyad Bank, Al-Rajhi Bank, Arab National Bank, Saudi Fransi Bank and Aljazira Capital.