Dubai's Al Mal Capital secures approval for REIT IPO

Al Mal Capital REIT will be listed on Dubai Financial Market with target offer of $136mln

  
A man stands near to a logo of the Dubai Financial Market in Dubai, United Arab Emirates, January 8, 2020.

A man stands near to a logo of the Dubai Financial Market in Dubai, United Arab Emirates, January 8, 2020.

REUTERS/Christopher Pike

The UAE Securities and Commodities Authority (SCA) has approved the initial public offering (IPO) of Al Mal Capital REIT, with a subscription period to run from November 8-19.

With a target offer of AED 500 million ($136 million) the proceeds of the offering will be utilised to invest in a diversified portfolio of income generating real estate assets, backed by secure long-term lease agreements, said Dubai Investments (DIC) in a statement to Dubai Financial Market.

“[The REIT] will provide UAE and GCC investors access to an asset class with strong fundamentals, through a strategy focused on investing in high-performing UAE sectors, including healthcare, education and industrial assets, with a target annual return of 7 percent,” said the statement.

The fund’s focus will be on acquiring real estate properties in the UAE and abroad with emphasis on high growth sectors including healthcare, education and industrials, with the intention of investing in Shariah-compliant assets with Shariah financing structures. Assets can be both onshore and in freezones.

The subscription price will be AED 1.00 per unit, with a subscription fee of AED 0.02 per unit. Subscription will take place via First Abu Dhabi Bank (FAB) and DFM eIPO platform.

Khalid Bin Kalban, Chairman of Al Mal Capital PSC said “In the current environment, investors are looking for secure long-term attractive returns. Al Mal Capital is confident that the REIT and DFM listing will meet investors’ needs, providing a liquid vehicle to access a sector with strong fundamentals.”

(Writing by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@refinitiv.com

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© ZAWYA 2020

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