Jadwa REIT’s IPO 120% oversubscribed

Jadwa REIT Saudi Fund’s (Jadwa REIT Saudi) initial public offering (IPO) has been 120.9 percent complete after 57,639 subscribers injected SAR 573 million in cash, according to Jadwa Investment Co., the fund manager.

The offering ran for 15 working days from Jan. 4- 23.

The fund size amounts to SAR 1.58 billion, and it offered 47.40 million units at SAR 10 per unit.

All subscribed units will be allocated at 50 units/each, while the remaining units will be allocated pro rata. Refunds will be paid in five business days.

The REIT seeks to generate SAR 129.96 million in leasing income in 2018, from which to distribute up to 90 percent. This sum will make up a total return of 8.39 percent on initial assets, and a net return of 7.3 percent for the first year of trading.

Jadwa REIT said its asset base comprises five real estate assets located in Riyadh, Dammam and Al-Khobar, worth SAR 1.55 billion. Assets include offices, residential units, warehouses, hotels and retail space.