Al Nefaie applies global valuation standards to Al Nefaie Umm Alqura REIT, says CEO

Al-Nefaie Investment Group has adopted the “highest” international valuation standards (IVS) to value the assets managed by Al-Nefaie – Umm Alqura REIT Fund, chief executive, Hany Youssef, said in a statement.

The move came after the Saudi Capital Market Authority (CMA) and Saudi Authority for Accredited Valuers (Taqeem) had approved IVS for REIT units earlier this week.

Appraisers from Taqeem and the CMA have evaluated the leasing value of the fund’s properties to ensure that it comes in line with the market prices.

The fund’s asset valuation was conducted by Taqeem valuers using the income approach.

Al Nefaie– Umm Alqura REIT Fund’s initial public offering (IPO) started on January 16, and will close on February 26.

The fund size amounts to SAR 692 million, and 34.95 million units were on offer at SAR 10each. It is floating SAR 349.5 million worth of assets, or 50.5 percent of the fund’s units.

The REIT seeks to generate a net return of 5.53 percent for the first three years of trading.

Al-Nefaie said its asset base comprises four real estate assets located in Makkah. Assets include hotel towers and commercial centers.