Alkhabeer Capital to offer Alkhabeer REIT's units in IPO on Nov. 11

Saudi Arabia’s Alkhabeer Capital plans to offer units of Sharia-compliant Alkhabeer REIT in an initial public offering (IPO) on November 11-29, 2018.

A 24 percent of the fund's assets will be offered at a total value of SAR 237 million.

The fund has an asset base of seven income-yielding real estate properties in prime locations in Riyadh, Jeddah, and Tabuk.

It targets an annual return of 9 percent, to be paid on a quarterly basis.

Alkhabeer Capital has a real estate portfolio of more than SAR 3.6 billion as on December 31, 2017, managed by ten REITs, which own several realty projects in Jeddah, Riyadh, Al Khobar and Makkah.

The receiving banks include National Commercial Bank (NCB), Riyad Bank, Al Rajhi Bank, Arab National Bank (ANB), Banque Saudi Fransi (BSF) and Aljazira Capital.

Tadawul started listing real estate investment trusts (REITs) in 2016, in a move aimed at enhancing transparency in the property sector and easing the Kingdom’s housing shortage.

The fund allows investors to access the local real estate market through purchasing existing and developed property.