Saudi's Alkhabeer Capital announces second additional offering of REIT Fund

The subscription period will extend for 15 working days, from May 30 until June 17

  
A bundle of 500 and 100 Riyal banknotes in Saudi Arabia.  Image used for illustrative purpose.

A bundle of 500 and 100 Riyal banknotes in Saudi Arabia.  Image used for illustrative purpose.

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Saudi Arabia - Alkhabeer Capital, an asset manager specializing in Shariah-compliant investments and financial services, has announced the commencement of the subscription period for the second additional offering of Alkhabeer REIT Fund, a publicly offered closed-ended Shariah-compliant real estate investment traded fund. The subscription period will extend for 15 working days, from May 30 until June 17.

The second additional offering aims to increase the total assets of the fund by 19 percent, from SR1.73 billion ($461.3 million) to SR2.06 billion, by offering 38,037,835 additional units, of which 15,736,500 units will be available for public subscription. The additional shares are priced at SR9.03, inclusive of subscriptions fees and value-added tax. Subscription for the additional units of Alkhabeer REIT Fund is open for Saudi locals, foreign residents and qualified institutions through the appointed receiving banks, including Al-Jazira Capital, Al-Rajhi Bank and Saudi National Bank. It will be available to clients of other banks through the subscription system on the website of Alkhabeer Capital.

This decision is in line with the long-term strategy of the fund, which is focused on achieving stable cash flows for investors by investing in income-generating assets. The second additional offering will enhance the attractiveness of the investment opportunities provided by Alkhabeer REIT Fund, through diversifying its asset base and the sectors it targets. Proceeds from the second additional offering will be used to acquire educational and industrial assets, including Vision Colleges for Education and Akon warehouses in Jeddah. This will bring the total number of assets to 12 properties.

Alkhabeer REIT is a closed-ended publicly traded real estate investment fund. It was listed on Tadawul on March 20, 2019. The fund’s real estate portfolio includes assets diversified across the retail and industrial sectors, as well as in offices, residential and educational properties, located in strategic locations in Jeddah, Riyadh and Tabuk. The first additional offering of Alkhabeer REIT in 2020 was completed successfully, which recorded 104 percent oversubscription and saw its assets under management increase by 70 percent to more than SR1.7 billion.

Alkhabeer Capital, headquartered in Saudi Arabia, specializes in Shariah-compliant investments and financial services. It is authorized by the Capital Market Authority.

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