Al Mashaar REIT IPO 100% complete

The initial public offering (IPO) of Al Masha’ar Real Estate Investment Traded Fund (Al Mashaar REIT) is 100 percent complete, Muscat Capital said in a statement.

Al Masha’ar REIT is  a sharia-compliant fund with a target size of SAR 572.4 million. A total of 57.24 million units was offered at SAR 10 per unit.

 The REIT is initially looking to acquire three flagship hotel towers in Makkah, with annual rent of 6.75 percent, as part of its plan to maximize investor returns, said Khalifa Abdullah Al Hatmi, chief executive of Muscat Capital.

The fund, which also seeks to pay semi-annual dividend at 90 percent minimum, can invest 25 percent maximum of total assets in real estate development projects.

Al Masha’ar will be the sixth REIT trading on Tadawul, after Aljazira Mawten REIT, Jadwa REIT Al-Haramain Fund, Taleem REIT, Al Ma’athar REIT and Musharaka REIT.

Muscat Capital, the investment banking arm of Bank Muscat, was licensed by the Saudi Capital Market Authority (CMA) to commence activities as a principal, managing, arranging, advising and custody services in June 2009.