Wasatah REIT to launch IPO Jan. 14

Wasatah REIT Fund

Fund structure                     

Close ended, Sharia-compliant REIT Fund

Offering period

From Jan. 14 to Jan. 25

Investment objectives

Acquire developed properties that generate regular income, distribute a regular income to unit holders at 90 percent minimum of net income over the fund term within 90 days of every calendar year, except for capital gains booked from sale of property assets. These properties will be reinvested in additional assets for shareholders interest.

Preliminary property assets

Mövenpick Hotel Riyadh, Coral Al Khobar Hotel.

Fund’s target size

SAR 1.08 bln

Total number of units

108 mln

IPO size

SAR 324 mln

Number of units offered

32.4 mln

Unit price

SAR 10

Minimum investment

SAR 10,000

Maximum investment

SAR 54 mln

Subscription fee

2 percent of the investment value

Dividends

90 percent of the fund’s annual income at least once per annum

Receiving entities

Al Rajhi Bank, Arab National Bank, Wasatah Capital website