Asset management firm Al Mal Capital has raised 350 million dirhams ($95.29 million) from the initial public offering (IPO) of its property fund.
The subsidiary of Dubai Investments had earlier floated its newly founded real estate investment trust (REIT) on the Dubai Financial Market (DFM). The proceeds were meant to invest in a diversified portfolio of assets.
“We are proud that we have successfully raised the required amount for Al Mal Capital REIT, especially during the unprecedented times we faced this year. We are confident that the REIT will continue to meet investors’ needs, as we begin to purchase and acquire income-generating real estate assets,” said Naser Al Nabulsi, vice chairman and CEO of Al Mal Capital.
Al Mal Capital REIT secured a license to operate as a real estate investment fund on December 21, 2020. Following the IPO, the REIT’s shares will be listed on the bourse in January 2021.
IPO proceeds
As for the proceeds of the recently concluded IPO, the firm said it plans to buy properties that can generate income for the investors.
“The IPO proceeds along with Islamic financing from local banks will be utilised to invest in a diversified portfolio of high-performing UAE sectors, including healthcare, education and industrial assets, with a target annual return of 7 percent,” the firm said.
“The fund manager will acquire income-generating real estate in high-growth sectors with high occupancy and single let assets, while entering long-term lease agreements with tenants with strong credit profiles,” it said.
It said the REIT will focus on acquiring onshore and offshore assets, in addition to targeting investments in Shariah compliant assets through Shariah financing structures.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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