Bonyan REIT Fund closes IPO today

Bonyan REIT Fund will today close subscription to its share offering on the Saudi Stock Exchange (Tadawul).

The fund’s initial public offering (IPO) kicked off on April 15.

The fund offered 65.15 million units at SAR 10 per unit, accounting for 40 percent of its total units. The minimum subscription was SAR 1,000.

Bonyan aims to invest in real estate assets inside and outside the Kingdom, and to distribute semi-annual cash dividend of no less than 90 percent of fund's annual net profit. Dividend will be distributed at the end of the second and fourth quarters of every year.

The fund's asset base includes ten properties: four shopping malls, three hotels, two residential compounds, and one apartment building at City Walk Dubai.

The REIT will invest at least 75 percent of its total assets in developed real estate assets and will not invest in vacant land.

It may diversify its investments by investing a maximum of 25 percent of its total asset in real estate located inside the Kingdom.