- Al Mal Capital REIT plans to raise a maximum of AED 440 million to further accelerate growth and diversify our portfolio of real estate assets.
- The proceeds from the capital increase, in addition to bank funding, are expected to increase the portfolio size to c. AED 1.3 billion.
Dubai, United Arab Emirates:– Al Mal Capital REIT (“AMCREIT”), the first REIT listed on DFM and managed by Al Mal Capital PSC, a subsidiary of Dubai Investments PJSC, is pleased to announce a significant rights issue to commence on Monday 4th March 2024. The rights issue follows approval granted by the UAE’ Securities and Commodities Authority (SCA) and proceeds raised will fund the acquisitions of additional income generating educational and healthcare assets to strengthen AMCREIT’s portfolio and help create sustainable value for unitholders.
AMCREIT has an existing portfolio size of c. AED 580 million, invested in a diversified portfolio of income-generating educational assets in the UAE. The fund has an investment strategy focused on strong-performing sectors such as healthcare, education, and industrials. This is based on secure long-term lease agreements with strong credit profile operators, offering UAE and GCC investors access to an asset class with strong value creation fundamentals – generating a target return of 7%.
The issuance will deliver a maximum of four-hundred million new units to existing unitholders at a price of AED 1.1 per share – increasing the share capital by approximately 114% to c. AED 750 million, in addition to raising AED 40 million via issue premium, totalling aggregate unitholders’ equity of AED 790 million following the capital increase. The capital raised by the rights issue will further enhance AMCREIT’s offering, by acquiring strategic and high potential assets in specified sectors, diversifying the REIT’s portfolio, and enhancing overall stability, generating further yield on behalf of investors.
The rights issue entitles all AMCREIT unitholders to subscribe to the newly issued units – with each subscribing unitholder to be issued 1 ‘right’ for every .875 units of ownership at a subscription price of 1.1 AED per unit. Unitholders’ will also be entitled to sell these rights to other interested investors on the Dubai Financial Market during the trading of rights period which is scheduled to begin Monday 26th February 2024.
Naser Al Nabulsi, CEO and Vice Chairman of Al Mal Capital, commented:
“This significant rights issue is an important step in our journey to generate consistent and sustainable value for our investors, solidifying our position as a leading real estate asset manager and investor in the Gulf. We recognise that there are significant untapped opportunities in the commercial real estate sector, and we remain focused on identifying and acquiring those assets that are strategically aligned with our vision. We pride ourselves on our performance, consistently delivering robust growth and yield. This transaction heralds the next stage of our growth journey as we look to continue delivering value for investors in the Gulf.”
Detailed information about the rights issue, including the timeline and subscription process, were communicated through official channels, including the AMCREIT’s website and regulatory filings via DFM.
- Rights eligibility date: Friday 23rd February 2024
- Trading of rights period: Monday 26th February 2024 until Friday 15th March 2024
- Subscription period: Monday 4th March 2024, until Friday 22nd March 2024
- Allocation Date: Friday 29th March 2024
For further information and detailed terms and conditions, please refer to the rights issue prospectus and visit www.almalcapitalreit.com, and find the FAQs, here link here.
Media / analysts:
Nahed Ashour / Gregor Riemann
Al Mal Capital REIT
Investor Relations Page
Lead Receiving bank:
First Abu Dhabi Bank (FAB)
Dubai Financial Market
About Al Mal Capital REIT: Al Mal Capital REIT is a closed ended real estate investment trust (REIT) that invests in a diversified portfolio of income generating real estate assets in the UAE and GCC, based on secure long-term lease agreements with a strong credit profile.
The Fund offers UAE and GCC investors access to an asset class with long-term fundamentals, through a strategy focused on investing in strong-performing UAE sectors, including healthcare, education and industrial assets, with a target return of 7%.
As per the six months period ending 30 June 2023, The REIT has a fund size of c. AED 580 million and is managed by Al Mal Capital PSC with the following objectives:
- Invest in income-generating real estate assets that include, but are not limited to, educational, health, and industrial facility real estate assets in the United Arab Emirates and the GCC countries.
- Structure secure long-term lease agreements with credit worthy counterparties.
- Provide stable income to unitholders through annual profit distributions targeting c. 7% returns.
- Achieve capital growth where feasible.
To know more visit – www.almalcapitalreit.com
About Al Mal Capital PSC: Established in 2005, Al Mal Capital PSC is a respected financial services firm and a subsidiary of Dubai Investments PJSC, licensed by the Securities and Commodities Authority (SCA). With an asset under management of approximately AED 2.2 billion, Al Mal Capital PSC offers a range of financial solutions across direct investments, corporate advisory, asset management, and capital markets. The Company’s expertise spans across investment management, corporate finance, and trading in various asset classes, positioning it as a preferred choice for clients seeking comprehensive financial services in the MENA region. To know more visit –www.almalcapital.comx
The mentioned return of 7% is a target net return of 7%, on average, without any confirmation that such return will be achieved. Future data includes expectations, and the fund, the fund manager, and the fund’s service providers don’t give any guarantee that such expectations will be achieved. Market conditions, risks and uncertainties the fund and / or the fund manager could face may impact future expectations. Please refer to the risk factors section in the fund’s Prospectus for any clarifications.