Mulkia Investment publishes supplementary appendix for Mulkia Gulf REIT’s terms to vote on increasing total asset value

Logo of Mulkia Gulf Real Estate REIT Fund

Mulkia Investment Co. published the supplementary appendix to the terms and conditions for Mulkia Gulf Real Estate REIT Fund to enable unitholders to vote on the total asset value increase and raise the fund’s capital between SAR 250 million maximum and SAR 114.86 million minimum. The move aims to complete the acquisition of Aljada Commercial Hotel Complex, and the partial repayment of the outstanding financing amount.

In a statement to Tadawul, Mulkia Investment said the target offering will start from March 16-29.

The mechanism for subscriptions, allocation and pricing will be as follows:

A total of 3.56 million units will be allocated in-kind units to the property owners on a pro rata basis. The cash units will be allocated according to the following mechanism:

1- The cash units offered firstly to the fund’s registered unitholders will be allocated on the unitholders meeting date, for those wishing to subscribe to the additional cash units. The allocation shall be at a maximum percentage of each unitholder’s ownership on that meeting day.

2- The remaining cash units after the procedure in paragraph (1) will be allocated to the fund’s registered unitholders on the unitholders meeting date on a pro rata basis on that date. This is proportional to the size of the additional subscription for unitholders without applying a maximum for subscribers of this category.

3- A %20 of the remaining portion after the procedure in paragraph (2) will be allocated to institutional investors. However, if they fail to cover that portion, the remaining will be allocated to the rest of the subscribers as described in paragraph (4).

4- The remaining additional cash units, if any, will be allocated to the rest of the registered and non-registered institutional and individual investors on the unitholders meeting day for increasing the total value of the Fund's assets.

After the end of the offering, if the total subscription amounts collected from all investors, including the in-kind subscription, are less than the minimum amount required to be collected SAR 114.86, all subscription amounts will be refunded to the investors, without any deduction except for bank charges, within five business days from the expiry date of additional offering period, maximum, unless the offering period is extended.

After the end of the offering, if the total subscription amounts collected from all investors, including the in-kind subscription, are equal to or more than the minimum required to be collected to increase the fund's capital of SAR 114.86 million subscriptions will be accepted up to a maximum amount of SAR 250 million, which is the maximum increase of the fund's capital.

The subscription price for the additional units will be based on the average closing price for five trading days ending three days before the offering, less 10%, noting that the fund manager will rely on a unified pricing mechanism for in-kind and cash subscriptions.

Voting on the decision will be available during the meeting of unitholders scheduled to be held remotely via Tadawulaty system. The voting will begin on Feb. 22, provided that the voting period on the decision ends on the day of the meeting Feb. 26.