Bonyan REIT's IPO kicks off today

Bonyan REIT Profile

Fund

Bonyan Real Estate Investment Traded REIT Fund, sharia-compliant REIT

Investment objectives      

Investing in income-generating real estate properties inside and outside where at eat 90% of the fund’s net profit shall be distributed to unit holders on a semi-annual basis

Fund size

SAR 1.628 bln

IPO Percent

40% of total units

In-kind subscriptions

SAR 977.28 mln. The fund manager will issue 97.72 mln units representing 60% of the fund units for real estate properties sellers.

IPO monetary value

SAR 651.52

Number of IPO units

65.15 mln units

Unit’s price

SAR 10

IPO period

15 days from April 15 to May 3

Receiving banks

BSF, Al Rajhi, Riyad, Samaba, NCB and Saudi Fransi Capital

Minimum Subscription Limit

SAR 1,000 (100 units at SAR 10 per unit)

Maximum Subscription Limit

SAR 81 mln (8.1 mln units at SAR 10 per unit)

Subscription fees

None

Management fees

0.5% annually from total fund value after deducting expenses

Custodian fees

- 0.025% annually from total fund value

- SAR 30,000 annually for Zakat declaration and financial statements

- SAR 60,000 one-time expense for establishing a facility with an objective

Fund manager

Saudi Fransi Capital

Fund term

99 yrs from the listing in Saudi market. The term is renewable to similar periods after obtaining approvals from the fund’s board and the CMA

Valuators

Knight Frank, ValueStart and Tathmen

Cash dividend

Semi-annual cash dividend of not less than 90% of fund annual net profit to be paid at the end of Q2 and Q4 of each fiscal year

Trading

The same methodology of trading stocks within the Saudi Stock Exchange