Alkhabeer REIT targets 7 income-yielding assets in Saudi Arabia

Sharia-compliant Alkhabeer REIT targets an asset base of seven income-yielding real estate properties in prime locations in Riyadh, Jeddah, and Tabuk.

Assets include offices, residential units, and retail space on a 139,760 square meters (sq m) of built-up areas (BUAs).

Alkhabeer REIT offered 24 percent of assets at a total value of SAR 237 million. It targets an annual return of 9 percent, to be paid on a quarterly basis.

The fund’s total assets are valued at over SAR 1 billion.

The initial public offering (IPO) started on Nov. 11 and will run through Nov. 29, 2018.

Alkhabeer Capital had a real estate portfolio of more than SAR 3.6 billion as on December 31, 2017, managed by ten REITs, which own several realty projects in Jeddah, Riyadh, Al Khobar and Makkah.

Fund’s Properties
1st property
Name	Al Malga Compund
Location	Al Malga, Riyadh
Use	Residential
Ownership type	Free ownership
Land area	15,925 SQM
Building area	41,361 SQM
Number of floors	3 floors+ an attachment
Components	18 buildings include 290 furnished units
Building age	3 yrs
Current owner	Mortgaged at Riyad Bank to vacate in favor of Ithraa Al Riyad Real Estate Co.
Acquisition cost	SAR 314 mln
Tenant	King Faisal Specialized Hospital and Research Center
Annual rent	SAR 20.19 mln
Occupancy rate	100% but expected to be cut to 44% as the tenant requested to renew the contract for 3 yrs for 8 buildings starting from Jan. 2019. Rent from remaining building not taken into consideration
2nd property
Name	Gallery Mall
Location	Al Salehiyah, Tabuk
Use	Retail
Ownership type	Usufruct
Land area	41,630 SQM
Building area	43,625 SQM
Number of floors	A basement and 2 floors
Components	139 shops, 15 restaurants, 39 Kiosks and 4 cafes
Building age	Under construction
Current owner	Suliman Al Qadeebi sons Co. (usufruct contract owner)
Acquisition cost	SAR 155 mln
Tenant	Suliman Al Qadeebi sons Co.
Occupancy rate	100%
Rent starting date & contract term	10 yrs (5 yrs are binding) from the transfer of usufruct right
Annual rent	SAR 22.96 mln
Guarantees	10 promissory notes equivalent to 5 yrs rental value
3rd property
Name	Plazo Center
Location	Al Sulaimaniyah, Riyadh
Use	Retail
Ownership type	Free ownership
Land area	6,050 SQM
Building area	5,819 SQM
Building age	2 yrs
Components	15 showrooms
Number of floors	2
Current owner	Chemo Commercial Investment Co. according to the instrument and Numu Co. Ltd. (usufruct owner)
Acquisition cost	SAR 93.30
Tenant	12 different tenants
Occupancy rate	100%
Rent starting date & contract term	From 2 to 10 yrs according to the rent contracts
Annual rent	SAR 8.07 mln
4th property
Name	Home Works
Location	King Fahd, Riyadh
Use	Retail
Ownership type	Free Ownership
Land area	7,000 SQM
Building area	9,181 SQM
Building age	20 yrs
Components	Commercial center (showroom)
Number of floors	One floor and a basement
Current owner	Abdulqader bin Shaibah Al Hamad
Acquisition cost	SAR 78 mln
Tenant	Al Futtaim International Commercial Co.
Occupancy rate	100%
Rent starting date & contract term	15 binding yrs (13 yrs remaining)
Annual rent	SAR 6 mln increasing SAR 250,000 every 5 yrs
5th property
Name	Ahlan Court
Location	Al Andalus, Jeddah
Use	Retail
Ownership type	Free Ownership
Land area	4,342 SQM
Building area	2,758 SQM
Components	9 showrooms and an Admin. office
Number of floors	2
Building age	10 yrs
Current owner	Mortgage at Bank Aljazira to vacate in favor of Aman Alestethmar for Real Estate Co.
Acquisition cost	SAR 70 mln
Tenant	Nadd Arabia Co.
Occupancy rate	100%
Rent starting date & contract term	15 binding yrs starting from ownership transfer
Annual rent	SAR 7 mln paid on semi-annual installments, increasing 5% every 5 yrs
Guarantees	30 promissory note covering the binding rental period of 15 yrs
6th property
Name	Bin 2 Commercial Center
Location	Al Amwaj, Jeddah
Use	Retail/office
Ownership type	Free ownership
Land area	20,642 SQM
Building area	21,305 SQM
Components	21offices, 42 shops
Number of floors	3
Building age	4 yrs
Current owner	Mortgage at BSF to vacate in favor of Sakan Finance Co.
Acquisition cost	SAR 90 mln
Tenant	Nadd Arabia Co.
Occupancy rate	100%
Rent starting date & contract term	15 binding yrs starting from ownership transfer
Annual rent	SAR 9 mln paid on semi-annual installments, increasing 5% every 5 yrs
Guarantees	30 promissory note covering the binding rental period of 15 yrs
7th floor
Name	Elite Commercial Center
Location	Al Andalus, Jeddah
Use	Retail/office
Ownership type	Free ownership
Land area	4,320 SQM
Building area	15,712 SQM
Components	6 showrooms, 7 commercial areas and 45 offices
Number of floors	5 floors
Building age	5 yrs
Current owner	Mortgage at BSF to vacate in favor of Sakan Finance Co.
Acquisition cost	SAR 160 mln
Tenant	Nadd Arabia Co.
Rent starting date & contract term	15 binding yrs starting from ownership transfer
Annual rent	SAR 16 mln paid on semi-annual installments, increasing 5% every 5 yrs
Guarantees	30 promissory note covering the binding rental period of 15 yrs

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