Derayah REIT IPO to begin December 27

19/12/2017 Argaam

 

Derayah REIT’s initial public offering (IPO) will run from Dec. 27 to Jan. 7, fund manager Derayah Financial Corporation Company said in a statement.

 

Subscription will be available through Riyad Bank, the National Commercial Bank (NCB), and Derayah Financial.

 

Derayah REIT will have a fund size of SAR 1.17 billion, representing 15 properties in Riyadh, Jeddah, Dammam, Khobar, Jubail, and Al-Ahsa. The assets include offices, residential units, warehouses, hotels, and retail units.

 

The sharia-compliant fund offers SAR 361.7 million worth of assets to the public, and plans to distribute 90 percent of its profit semi-annually, with expected net returns of 7.22 percent over the next year.

 

In the coming period, the fund plans to take advantage of available financing opportunities to raise its net returns, Derayah Financial CEO Mohammed Al Shammasi said.

 

Earlier this month, the Saudi Capital Market Authority (CMA) approved Derayah Financial Corporation Company’s request to offer, register and list units of the Derayah real estate investment traded fund (REIT) on the Saudi Stock Exchange (Tadawul). 

 

Derayah REIT Fund - Details

Fund name

Derayah REIT

Fund manager

Derayah Financial Corporation Company

Fund size

SAR 1.172 bln

Assets

15 properties in Riyadh, Jeddah, Dammam, Khobar, Jubail and Al-Ahsa

Dividend distribution

90% semi-annually

Offering period

Dec. 27, 2017 - Jan. 7, 2018

Minimum subscription

SAR 10,000

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.