Alkhabeer REIT opens subscription to second additional public offering

The subscription to increase the total asset value of Alkhabeer REIT Fund through additional public offering started on May 30, 2021, and will run for 15 working days until June 17, 2021, fund manager Alkhabeer Capital said in a bourse filing.

Unitholders approved increasing the fund's total assets by nearly SAR 335.5 million via second additional offering during the meeting held on April 25, 2021, Argaam reported.

Th fund is a closed-end Shariah compliant traded real estate investment fund, listed on the Saudi Stock Exchange.

The fund will offer 38.04 million units to raise its total asset value from SAR 1.727 billion to SAR 2.062 billion, as follows:

- A total of 22.30 million units will be offered in-kind to sellers of new real estate assets, in consideration of their in-kind contribution.

- A total of 15.74 million units worth SAR 138.82 million will be offered in cash.

The move aims to acquire some real estate assets, including the following:

1) Vision College for Education (previously known as Al Farabi College for Education), located at Al-Rayyan district, east of Al-Haramain highway, Jeddah.

2) Akun Cold Storages, warehouses located at the intersection of King Faisal Road and South Corniche Street, King Faisal Naval Base, Jeddah.

Properties Details
Property	Sector	City	Building area (‘000 sqm)	Rental value	Acquisition value (SAR mln)
Vision College for Education	Education	Jeddah	13,79	100 %	107.5
Akun Cold Storages	Logistics	Jeddah	12,89	100 %	226.7

Alkhabeer REIT Profile
Current capital	SAR 1.0297 bln
Current number of units	102.97 mln units
Total assets value as of Sept. 30, 2020	SAR 1.7272 bln
Withdrawn funding	SAR 737.50 mln

Additional Offering Profile
Fund Capital after the additional offering	SAR 1.410 bln
Increase in Fund Capital	SAR 380.38 mln
New number of units	141.01 mln units
Fund assets following the additional offering	SAR 2.062 bln
Withdrawn funding	SAR 737.50 mln
Offering objective	Acquiring additional real estate assets
Number of additional units	38.04 mln units
Number of units offered for in-kind contributions	22.30 mln units
Number of units offered for cash contributions	15.74 mln units
Targeted offering price per unit	SAR 8.8201
Total subscriptions value	SAR 335.50 mln
The increase in capital nominal value	SAR 380.38 mln
Eligible subscribers	Natural persons, institutions, companies, investment funds and other legal persons based in Saudi Arabia, and other investors allowed to own shares listed on Tadawul
Minimum subscription limit	SAR 500 (No maximum limit)
Allotment methodology	Monetary units to be allotted first to registered unitholders on the meeting day willing to subscribe to monetary units at a pro-rata basis. Remaining units, if any, will be allocated to other investors
Offering period	15 business days from May 30 to June 17, 2021
Additional offering period	Offering period could be extended for 10 business days after obtaining CMA approval

Additional Information
Lead manager	Aljazira Capital
Receiving Banks	SNB, Al Rajhi Bank, Aljazira Capital. Subscriptions are also available to customers of other banks through the subscription system on the fund manager’s website

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