Bonyan REIT targets 10 assets worth SAR 1.6 bln

Bonyan REIT Fund aims to invest in 10 real estate assets inside and outside the Kingdom at a total value of SAR 1.6 billion.

The fund's asset base will include ten properties: four shopping malls, three hotels, two residential compounds and one apartment building in both Saudi Arabia and Dubai.

The fund size amounts to SAR 1.62 billion. It will offer 65.15 million units at SAR 10 per unit, accounting for 40 percent of its total units. The minimum subscription is SAR 1,000.

Bonyan REIT Fund’s average projected net yield is 7.8 percent annually over a four-year period, growing from 7.3 percent in 2018 to 8.2 percent by 2021.

The Sharia-compliant fund is targeting annual rents of SAR 127.8 million this year.

Its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul) began on April 15 and will run until May 3.

Bonyan REIT asset base
Total no. of assets	10 real estate assets
No. of properties to be acquired (ownership)	9 real estate assets
No. of assets to be acquired (usufruct right)	1 property, and the fund will have the right to buy the property during the first five years of signing the contract at SAR 110 million
Developed assets	10 real estate properties
Total cost	SAR 1,604.74 million
Funds to be raised	SAR 651.52 million
Fund size	SAR 1,628.81 million
Geographical presence	Saudi Arabia (Riyadh, Abha, Jazan, Almadinah) UAE (Dubai)
Total rent in 2018	SAR 127.8 million
Net income for 2018	SAR 118.2 million
Net income ratio	7.26 percent

Bonyan REIT’s asset base
Asset	City	Value (SAR mnl)	40% of asset value	*Net annual rent 2018 (SAR mln)**	Percentage of the fund size
Residential sector
Ar Rafiah Villa compound	Riyadh	190.0	--	14.92	11.66%
Al-Maather Villa Compound	Riyadh	5.50	--	0.54	0.34%
City Walk building (2B)	Dubai	273.00	--	10.25	16.76%
Hotels
Courtyard by Marriot	Jizan	90.0	--	6.31	5.52%
Residence Inn by Marriot	Jizan	55.50	--	4.00	3.41%
Al Rashed Residences	Al Madinah	42.60	28.40	7.08	2.62%
Commercial centers
Al Rashid Mall	Jizan	206.00	--	15.65	12.65%
Al Rashid Mega Mall	Al Madinh	505.50	--	32.82	31.03%
Al Rashid Mall**	Abha	223.20	148.80	34.58	13.70%
Al Rashid Strip mall	Riyadh	13.44	8.96	1.64***	0.83%
Total		1604.74	186.16	127.79	98.5%
Capital restructuring fees		24.07			1.5%
The fund’s total size		1628.81			100%

*Estimated figures calculated by an independent advisor

** Usufruct right

***No contracts currently inked; however, figures were calculated by an independent advisor

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