Al Mashaar REIT IPO’s indicators ‘positive’, says Muscat Capital CEO

Indicators for Al Mashaar REIT’s initial public offering (IPO) are “positive and encouraging”, Khalifa Abdullah Al Hatmi, chief executive of Muscat Capital, told Argaam in an exclusive interview on Sunday.

The REIT is initially looking to acquire three flagship hotel towers in Makkah going forward, as part of its plan to maximize investor returns.

Al Mashaar’s investments are focused on Makkah and Madinah, where the real estate market is “very promising,” Al Hatmi said.

The fund also aims to add high-yield properties following completion of the listing process on the Saudi Stock Exchange (Tadawul).

Subscription to Al Mashaar REIT units started on Nov. 1 and will continue until Nov. 7.

A total of 57.24 million units were offered at SAR 10 each.

The minimum subscription limit stands at SAR 10,000, while the maximum is defined at SAR 28.6 million.

Al Mashaar will be the sixth REIT trading on Tadawul, after Aljazira Mawten REIT, Jadwa REIT Al-Haramain Fund, Taleem REIT, Al Ma’athar REIT and Musharaka REIT.

Muscat Capital, the investment banking arm of Bank Muscat, was licensed by the Saudi Capital Market Authority (CMA) to commence activities as a principal, managing, arranging, advising and custody services in June 2009.