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|17 February, 2019

Alkhabeer REIT signs facility agreement with Al-Rajhi Bank to finance REIT growth

The Shari'ah-compliant facility agreement will have a tenor of five years

Alkhabeer REIT signs facility agreement with Al-Rajhi Bank to finance REIT growth

Jeddah: Alkhabeer Capital, a prominent asset management company specializing in alternative investments, today announced that Alkhabeer REIT has signed a facility agreement valued at SAR 420 million with Al-Rajhi Bank.

The Shari’ah-compliant facility agreement will have a tenor of five years, providing financing of SAR 420 million, out of which SAR 340 million will be used by Alkhabeer REIT to finance part of the targeted assets, and SAR 80 million will be used for future acquisitions of income-generating assets. The SAR 1-billion Alkhabeer REIT, which successfully closed its IPO in November of last year, was oversubscribed at 104% and raised SAR 247 million from 25,124 retail and institutional investors. It is currently targeting net annual returns of 9% which are among the highest rates in the market.

Commenting on the agreement, Mr. Ahmed Saud Ghouth, CEO of Alkhabeer Capital, said: “Having a strong credit record would support Alkhabeer REIT’s future growth potential. Thus, since its inception, we have been keen on building the Fund’s credit record with the Kingdom’s banks and financial institutions.” He added: “This agreement is the result of Alkhabeer Capital’s unique relationship with Al-Rajhi Bank, and we look forward to further strengthening this partnership.”

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Alkhabeer Capital, headquartered in Jeddah in the Kingdom of Saudi Arabia, specializes in alternative investments and investment services. It is authorized by the Capital Market Authority, license number 07074-37.

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About Alkhabeer REIT

Alkhabeer REIT is a closed-ended Shari’ah compliant real estate investment traded fund, created in accordance with applicable Saudi laws and regulations and operates under Capital Market Authority regulations and directives. It is listed on the Saudi Stock Exchange with total assets of SAR 1,004,423,860 and is 99 years old. The offering and listing of Alkhabeer REIT Units on the Saudi Stock Exchange (Tadawul) was approved by CMA on 07.02.1440H, corresponding to 16.10.2018G.

Information about the fund, including an executive summary, terms and conditions, and risk factors, is available at https://www.alkhabeer.com/REIT.

  • Investment in the Fund is not a cash deposit with a local bank. The value of the investment and any other realized income may increase or decrease. All investors wishing to invest, should, in consultation with their financial and legal advisors, assess all the risks involved in the investment. Alkhabeer does not guarantee that the expected results will be achieved. In addition, the previous performance is not an indicator nor a guarantee of the future results of the funds.
  • Alkhabeer Capital is investing in Alkhabeer REIT.

About Alkhabeer Capital

Alkhabeer Capital is an asset manager specialized in alternative investments and providing innovative world class investment products and solutions to institutions, family groups and qualified high net worth investors. Alkhabeer’s Shari‘ah compliant business activities are distinguished by executional vigor and a profound understanding of clients’ needs and risk profiles.

Alkhabeer’s asset management services focus on providing investment opportunities in domestic, regional and international capital markets through a wide range of real estate and private equity funds. Our real estate investment team structures and develops innovative real estate investment products. Alkhabeer’s private equity services develop products to benefit from attractive opportunities in a number of sectors including education, healthcare and other sectors.

In addition, Alkhabeer’s asset management services provide its clients with investment opportunities in capital markets, while Alkhabeer’s Investment Banking provides dedicated investment services, including merger and acquisitions. Alkhabeer also provides advisory services on structuring Waqf entities and managing Waqf wealth through its Waqf Program.

Headquartered in Jeddah, and with a branch in Riyadh, Kingdom of Saudi Arabia, Alkhabeer Capital is regulated by the Capital Market Authority (CMA), license no. 07074-37.

For more details on Alkhabeer Capital, please visit www.alkhabeer.com

Alkhabeer Capital on Social Media:

https://twitter.com/AlkhabeerCap

https://www.facebook.com/AlkhabeerCap

For further information, contact:

Abdulrahman Omar Baroom

Director of Corporate Services Division

Alkhabeer Capital

Direct +966 12 612 9344

Email a.baroom@alkhabeer.com

James Allan

Brunswick Group

Direct +971 4 560 9600

Email Alkhabeer@brunswickgroup.com

© Press Release 2019

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