Alistithmar Cap closes private placement of Income Generating Fund 1, raises SAR 680 mln

Alistithmar Capital for Financial Securities and Brokerage Co. has closed the private placement of Alistithmar Income Generating Fund 1, raising SAR 680.55 million, of which 50 percent were in the form of capital contribution and were fully covered by subscribers after surplus refunds.

The remaining 50 percent came in the form of bank facilities, secured from a local bank to help the fund acquire income-generating real estate assets in the Kingdom, Alistithmar Capital said in a statement.

The target funds were raised ahead of the scheduled closing date of the private placement, which received strong turnout from investors, the statement added.

Alistithmar Income Generating Fund 1 aims to record growth in capital and distribute quarterly yields to investors through investing in high-quality real estate assets that will generate income from lease contracts.

Tenants will be selected under certain criteria to ensure achieving the expected income.

The fund completed acquisition of two existing properties in Riyadh, namely Alia Plaza and Pavilions office complex.

“Alistithmar Capital, the fund manager, will continue to target real estate investments with attractive yields for its investors and provide these opportunities through offering real estate funds to achieve investors interest,” CEO Khaled Alrayes said.

Riyadh-based Alistithmar Capital, which is 100 percent owned by Saudi Investment Bank (SAIB), is licensed by the Saudi market regulator. The company provides brokerage, underwriting, fund management, client portfolio management, arrangement, advisory, and custody services.