Subscription to Al Rajhi REIT additional units begins today

17/05/2023 Argaam Special
Logo ofAl Rajhi REIT Fund

Logo of Al Rajhi REIT Fund


The subscription period to increase the total asset value of Al Rajhi REIT Fund through an additional offering for investors will start today, May 17, through May 30. 

 

A total of 113.75 million units will be offered at SAR 8.90 apiece. 

  

The fund aims to increase the value of its total assets to complete the acquisition of two assets, namely Riyadh Avenue Mall and Al-Henaki Business Centerin Jeddah. 

  

In April, the Capital Market Authority (CMA) approved the fund manager’s request to increase the fund's total asset value through issuing additional units to acquire new real estate properties, according to data compiled by Argaam

  

Subscription to additional units will be available to: 

  

- Unitholders registered on the day of the unitholders’ meeting slated to approve the increase in the total assets and those wishing to participate in the additional units. 

  

- Natural persons with Saudi nationality and GCC citizens. 

  

- Natural persons residing in the Kingdom. 

  

- Institutions, companies, investment funds and other entities, as well as legal persons based in Saudi Arabia, qualified foreign investors, and Gulf investors.

 

Offer Details

Fund

Al Rajhi REIT Fund

Fund assets before the increase  

SAR 2.06 bln

Number of additional units

113.75 mln

Offering period

10 business days from May 17-30, 2023

Target offering proceeds

SAR 1.01 bln

Offering price

SAR 8.90/unit

Driver

Acquiring real estate assets

Use of proceeds

Acquiring real estate assets

SAR 930 mln

Real estate transaction tax

SAR 46.5 mln

Ownership transfer fees

SAR 9.3 mln

Due diligence

SAR 1 mln

Sales commission

SAR 15.35 mln

Cash in the fund (to pay receiving entities’ fees and improvements in the fund’s properties)

SAR 10.35 mln

 

The receiving entities are Riyad Bank, Alinma Bank, AlJazira Capital, Al Rajhi Bank, Arab National Bank and Banque Saudi Fransi.

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