Derayah REIT IPO launches today

Derayah REIT Fund - Details

Fund name

Derayah REIT

Offering period

Dec. 27, 2017 to Jan. 7, 2018

Investment Goals

Invest in income-generating properties across the Kingdom to achieve annual returns for the fund’s investors.

Fund size

SAR 1.172 bln

Subscription fees

A one-time fee of 2% of subscription value to be paid to the fund manager in advance

Management fees

Annual rate of 0.85% of the net asset value to be paid semi-annually to the fund manager in advance

Financing

All bank facilities obtained to fund the acquisition of properties will be shariah-compliant. A maximum of 50 of the total assets can be funded.

Minimum Subscription

SAR 10,000

Maximum Subscription

SAR 50 million

Maximum Subscription

of Fund Manager

SAR 16.6 million

Fund manager

Derayah Financial Corporation Company

Fund Duration

99 years as of trading date on Tadawul, and renewable for an equal period after regulatory approvals.

Dividend distribution

Fund manager plans to distribute dividends semi-annually to unit holders of 90 percent of the net profit on March 31 and September 30 of each year except for the first year, when dividends will be distributed only on September 30, 2018.

Trading

As other traded REIT funds on Tadawul.