Osool & Bakheet’s Al Maather REIT to begin trading on Tadawul Aug. 22

Osool & Bakheet Investment Company’s Al Maather REIT will start trading on the Saudi Stock Exchange (Tadawul) under code 4334 on August 22, with a daily price fluctuation limit at 10 percent per share, Tadawul said in a statement.

Last June, Saudi Arabia’s market regulator, the Capital Market Authority (CMA) approved listing units of Al Maather on Tadawul as a Real Estate Investment Traded Fund (REIT). Al Maather is a closed-ended, Sharia-compliant REIT.

The fund targets capital of SAR 613.7 million and will be floated in an initial public offering (IPO) from July 2 to July 6, 2017.

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

AlMa'athar, which is managed by Osool & Bakheet Investment Co., aims to generate current income by investing in income-producing real estate assets in Saudi Arabia.

The fund’s initial investments are located in Riyadh. However, it may diverse its investments by investing a maximum of 25 percent of its total assets in real estate located across the Kingdom.

Three other REITs have also been listed on Tadawul so far: Aljazira Mawten REIT in February; Jadwa REIT Al Haramain Fund in April; and Taleem REIT in July.