Wasatah REIT Fund’s initial public offering (IPO) will run from Jan. 14 to Jan. 25, fund manager Wasatah Capital said in a statement on Monday.
The fund manager will offer 32.4 million units at SAR 10 each.
Subscription will be available through Wasatah Capital website, Al Rajhi Bank and Arab National Bank (ANB) at a minimum value of SAR 10,000 and a maximum of SAR 54 million.
Wasatah REIT will have a target size of SAR 1.08 billion, the fund manager added.
The close-ended Sharia-compliant fund aims preliminarily to acquire Mövenpick Hotel Riyadh and Coral Al Khobar Hotel, with a target net yield of 6.1 percent.
Investment risks in the fund are medium to high. Accordingly, well-informed investors only are recommended to subscribe to the fund’s units.
Eligible investors are Saudis, GCC nationals, foreigners residing in Kingdom, institutions, companies, and investment funds operating in the Kingdom and the GCC, along with Qualified Foreign Investors (QFIs).
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Wasatah REIT Fund |
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Fund structure |
Close ended, Sharia-compliant REIT Fund |
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Offering period |
From Jan. 14 to Jan. 25 |
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Investment objectives |
Acquire developed properties that generate regular income, distribute a regular income to unit holders at 90 percent minimum of net income over the fund term within 90 days of every calendar year, except for capital gains booked from sale of property assets. These properties will be reinvested in additional assets for shareholders interest. |
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Preliminary property assets |
Mövenpick Hotel Riyadh, Coral Al Khobar Hotel. |
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Fund’s target size |
SAR 1.08 bln |
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Total number of units |
108 mln |
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IPO size |
SAR 324 mln |
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Number of units offered |
32.4 mln |
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Unit price |
SAR 10 |
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Minimum investment |
SAR 10,000 |
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Maximum investment |
SAR 54 mln |
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Subscription fee |
2 percent of the investment value |
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Dividends |
90 percent of the fund’s annual income at least once per annum |
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Receiving entities |
Al Rajhi Bank, Arab National Bank, Wasatah Capital website |
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