MEFIC REIT stresses return guarantee as IPO nears closure

MEFIC REIT said its asset base comprises eight real estate assets worth SAR 1.2 billion, located in Saudi Arabia and UAE.

The fund's assets include offices, residential units, warehouses, hotels and retail space.

The fund announced that it will ensure a minimum return of five percent to unit holders, though annual returns may surpass that percentage, based on market conditions. The fund targets a net return of 7.5 percent for 2018 that rises gradually to 7.9 percent in 2021.

It has a total size of SAR 1.23 billion, and is offering 87.95 million units in initial public offering (IPO) at SAR 10 per unit (71.5 percent of capital).

The IPO started on April 4 on Saudi Stock Exchange (Tadawul), and runs until May 1.

The fund's assets are assessed twice a year by accredited assessors from Saudi Authority for Accredited Valuers (Taqeem).