Al Maather REIT seeks to acquire property worth SAR 552 mln

28/11/2018 Argaam

 

Al Maather REIT Fund has signed agreement to acquire new real estate assets across Saudi Arabia for a total consideration of SAR 552 million, according to a bourse filing.

 

The agreement, subject to regulatory approvals, will be financed via sharia-compliant bank facility of SAR 234 million, and issuance of 32.6 million new shares.

 

The fund manager is in talks to secure the financing portion from a local lender.

 

The target acquisitions comprise ten real estate properties and six usufruct assets, including offices, residential units and retail space, and are located in Riyadh (ten assets), Al Khobar (one asset), Al Kharj (one asset), Hofuf (one asset) and Buraydah (three assets).

 

The properties would yield a combined SAR 74.47 million, annually. Financial impact is expected post transfer of ownership.

 

The acquisition falls under the fund’s strategy on acquisition of attractive income-generating realty assets in Saudi Arabia.

 

In August, Al Maather REIT debuted trading on Saudi Stock Exchange (Tadawul). Its initial public offering (IPO) was oversubscribed by 1,520 percent, raising SAR 2.8 billion, Argaam previously reported.

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