Riyad Capital to invest SAR 100 mln in Riyad REIT

Riyad Capital, the fund manager of Riyad REIT, on Monday said it plans to invest SAR 100 million, equivalent to 20 percent of the cash contributions available to the public, in the REIT's SAR 500 million capital increase program.

The new investment reflects its trust and optimistic outlook for the fund, it said in a statement to Tadawul.

According to Riyad REIT’s capital hike plan, the fund will sell 121.7 million units at a target price of SAR 9.31 per unit -- 67.99 million units for in-kind subscriptions, and 53.71 million units for cash subscription.

The subscription period runs from April 1 until April 12.

The fund aims to attract companies and financial institutions to invest alongside investors from the public, the statement said.

Riyad REIT Fund is one of the largest real estate investment traded funds with a capital of SAR 1.75 billion, distributed over 11 real estate properties.

The fund will distribute 90 percent of its revenues semi-annually. The net yield to investors is expected to reach 6.3 percent this year and is expected to grow to 8 percent by 2020.