Derayah REIT starts trading today

Derayah REIT Fund will start trading on Saudi Stock Exchange (Tadawul) today, under the symbol 4339 and daily price fluctuation limit of 10 percent.

The fund’s initial public offering (IPO), which took place in January, was 125 percent oversubscribed, drawing some 10,600 investors -- where 1,000 units were allocated to each investor, and remaining units allotted on a pro rata basis.

The fund is the fifth REIT entry to Tadawul in 2018. Fund details are indicated in the table below:

Fund Details
Fund name	Derayah REIT
Fund manager	Derayah Financial Corporation Company
Fund size	SAR 1.172 bln
Assets	15 properties in Riyadh, Jeddah, Dammam, Khobar, Jubail and Al-Ahsa
Subscription fee	2% deducted in advance. Paid one time to fund manager.
Management fee	0.85% annually of net asset value. Fund pays it semi-annually to fund manager.
Custodian fee	0.03% annually of net asset value. Paid semi-annually to the custodian with a maximum limit of SAR 120,000 per year.
Fund term	99 years from listing date. Renewable for a similar period based on the fund manager’s assessment and upon CMA’s approval.
Dividend	90% of annual returns - in quarterly installments.

The fund's asset base comprises 15 real estate assets, including offices, residential units, warehouses, hotels and retail space, geographically dispersed across Riyadh, Dammam, Jeddah, Khobar, Jubail and Al-Ahsa.

Summary of Assets
Description	Number/value
Total no. of properties & usufruct to be acquired	15
No. of income generating properties	14
No. of usufruct properties	2
No. of properties under development	1
Total value of constituent assets	1,086.40
Total built-up Space (m²)	235,443

The following table gives details of the properties that the fund manager plans to acquire:

Target Properties for Acquisitions (SAR mln)
Property	Location	Purchase Price	Average Valuation	Sector
Smart Towers	Riyadh	263.50	264.03	Office & Retail
Al Jubail Views residential compound	Al Jubail	145.50	152.80	Residential
Al Mina warehouses complex	Dammam	130.00	129.00	Warehouses
City Life Plaza	Riyadh	106.25	109.68	Retail
Motoon Towers	Riyadh	98.00	100.86	Retail & Hotel
Al Fanar commercial Complex	Al Khobar	60.60	64.59	Show rooms & warehouses
The Grand (A) residential compound	Dammam	58.80	64.52	residential
Al Wadi Warehouses	Jeddah	58.00	57.55	Warehouses & residential
Al Seteen Trade Center	Riyadh	52.13	53.81	Office & commercial
The Valley	Al Ahsa	39.50	40.00	Commercial
The Grand (B) Commercial Complex	Dammam	31.25	31.94	Office
Workers’ residence buildings	Al Jubail	24.27	27.52	Residential
*City Walk Compound	Riyadh	10.50	11.10	Retail
Workers’ residence buildings	Dammam	5.09	6.17	Residential
Workers’ residence building	Al Khobar	3.01	3.59	Residential
Total		1,086.40	1,117.15

*The complex is a usufruct that terminates on February 28, 2021.

Below is a look at all REIT funds listed on Tadawul and their performance to date:

Performance of all listed REITs to date
REIT	Fund size (SAR mln)	Listing price (SAR)	Closing price (March 25)	Change
Aljazira REIT	118.0	10.00	16.32	%63
Taleem REIT	285.0	10.00	11.76	18%
Jadwa REIT Saudi	1580.0	10.00	9.85	(%2)
Jadwa REIT Al Haramin	660.0	10.00	9.19	(%8)
Al Rajhi REIT	1621.9	10.00	9.17	(%8)
Musharaka REIT	880.0	10.00	9.07	(%9)
Riyad REIT	1633.0*	10.00	9.02	(%10)
AlAhli REIT (1)	1375.0	10.00	8.87	(%11)
Mulkia Gulf REIT	600.0	10.00	8.49	(%15)
Al Ma’athar REIT	613.7	10.00	8.49	(%15)
Al Masha’ar REIT	572.4	10.00	8.48	(%15)
Derayah REIT	1172.0	10.00	--	--

* Unitholders approved a proposal (on March 18) to increase capital to SAR 1.63 billion from SAR 500 billion.

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