Alkhabeer REIT gets CMA nod to raise total assets through issuing units

Alkhabeer REIT Fund logo

The Capital Market Authority (CMA) approved Alkhabeer REIT Fund’s request to increase total asset value by issuing additional units for acquiring real estate assets, the market regulator said in a statement.

The request complies with the relevant requirements as per the Real Estate Investment Funds Regulations and Real Estate Investment Traded Funds instructions.

The fund manager will publish the terms and conditions of Alkhabeer REIT Fund prior to the unitholders meeting, including the objectives and rationale of increasing the fund's total assets value by issuing additional units.

The terms and conditions will include all relevant information the unitholders need to know before making a voting decision, including information on the acquisition transaction and risk factors.

The statement noted that the voting decision without reading the terms and conditions of Alkhabeer REIT Fund carefully or fully reviewing its content may involve high risk.

If the terms and conditions of Alkhabeer REIT Fund prove difficult to understand, it is recommended to consult with an authorized financial advisor, the CMA added.

The CMA stressed that its approval should never be viewed as an endorsement of the feasibility of increasing the fund's total assets value by issuing additional units for the purposes of a transaction, indicating that the regulatory requirements as per the Capital Market Law and its implementing regulations have been met.

On Sept. 27, 2020, Alkhabeer REIT’s board of directors approved the terms and conditions related to broadening the fund’s asset base, Argaam reported.