Jadwa REIT Saudi debuts on Tadawul today

11/02/2018 Argaam

Jadwa REIT Saudi Fund will start trading on Saudi Stock Exchange (Tadawul) today under the code 4342, with a daily price fluctuation limit of 10 percent per unit.

 

The fund’s initial public offering (IPO) in January was 120.9 percent oversubscribed, with 57,600 investors subscribing to 47.4 million units.

 

A minimum of 50 units per subscriber were allotted, while the remaining units were allotted on a pro rata basis of 81.77 percent for each subscription request above the minimum subscription.

 

Jadwa REIT Saudi is a sharia-compliant closed real estate investment fund with a target size of SAR 1.58 billion.

 

Fund's Profile

Fund

Jadwa REIT Saudi. Close ended, Sharia-compliant 

Fund Manager

Jadwa Investment

Investment objectives

Invests in income-generating, developed real estate assets all over the Kingdom except Mecca and Medina

Size

SAR 1.58 bln

Offering size     

SAR 474 mln

Subscription value

SAR 1.02 bln

Fund manager’s subscription

SAR 89.44 mln

Total number of units after IPO

158 mln

Unit price

SAR 10

Fund duration

99 years from listing date and could be extended for a similar period, after obtaining board and CMA approvals

Subscription fees

2% from subscription amount

Management fees

0.75% from net assets annually

Cash Dividend

Quarterly distributions. Annual dividend shall be no less than 90% of net income excluding capital gains.

 

Jadwa REIT Saudi’s asset base comprises five real estate assets worth SAR 1.55 billion, located mainly in Riyadh, Dammam and Al-Khobar.

 

The assets include residential, commercial, and educational properties as well as warehouses, built over 428,200 square meters.

 

Jadwa REIT Saudi Properties

Property

City

Sector

Land area (000’ m²)

Building area

(000’ m²)

Rent contract duration

Marvela residential compound

Riyadh

Residential, Commercial

73.2

158.7

5

Al Maarefa College

Riyadh

Educational

18.1

41.8

20

Al Solay Warehouse

Riyadh

Warehouses, offices, shops

218.9

143.4

5

Al Youm Newspaper Tower

Dammam

Commercial, offices

4.8

39.2

7

Al Fanar Residential & Commercial Compound

Al Khobar

Residential, Commercial

62.5

45.0

8 for residential, 5 for commercial

 

The fund seeks to generate SAR 129.96 million in leasing income in 2018, with a gross return of 8.39 percent and a net return of 7.3 percent annually.

 

Targeted Returns

Year

Net rentals

(SAR mln)

Gross returns on initial assets*

Gross fund returns *

Net fund

returns *

2018

129.96

 8.39%

 8.23%

 7.30%

2019

130.32

 8.41%

 8.25%

 7.32%

2020

131.39

 8.48%

 8.32%

 7.39%

2021

131.87

 8.52%

 8.35%

 7.42%

2022

132.25

 8.54%

 8.37%

 7.44%

* Returns were calculated on the assumption that assets will be acquired before 2018 end.

 

Share prices of seven Tadawul-listed REIT funds have dropped, compared to the time of listing, with Mulkia REIT dropping 14 percent as of Feb. 8.

 

Meanwhile, Aljazira REIT and Taaleem REIT have risen 60 percent and 9 percent, respectively.

 

REIT Funds Performance

REIT

Fund Size

 (SAR mn)

Listing Price (SAR)

Closing as of Feb. 8, 2018

(SAR)

Variation

Aljazira REIT

118.0

10.00

15.95

+60%

Taleem REIT

285.0

10.00

10.90

+9%

Jadwa REIT Al Haramin

660.0

10.00

9.48

(5%)

Musharaka REIT

880.0

10.00

9.50

(5%)

Riyad REIT

500.0

10.00

9.27

(7%)

AlAhli REIT (1)

1,375.0

10.00

8.98

(10%)

Al Ma’athar REIT

613.7

10.00

8.85

(12%)

Al Masha’ar REIT

572.4

10.00

8.77

(12%)

Mulkia Gulf REIT

600.0

10.00

8.63

(14%)

Jadwa REIT Saudi

1,580.0

10.00

 

 

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