Second additional offering of Alkhabeer Reit Fund

The subscription period will extend for 15 working days

  

Jeddah, Saudi Arabia: Alkhabeer Capital, the asset manager specializing in Shari'a compliant investments and financial services, announced today the commencement of the subscription period for the second additional offering of Alkhabeer REIT Fund, a publicly offered closed-ended Shari’a-compliant real estate investment traded fund. The subscription period will extend for 15 working days, from 30 May 2021 corresponding to 18 Shawwal 1442 until 17 June 2021 corresponding to 7 Dhu Al-Qadah 1442.

The second additional offering aims to increase the total assets of the fund by 19%, from SAR 1.73 billion to SAR 2.06 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 SAR 9.03, 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; and will be available to clients of other banks through the subscription system on the website of Alkhabeer Capital, The Fund Manager.

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.

For further information about the second additional offering of Alkhabeer REIT Fund and to obtain a copy of the Terms and Conditions, please visit the official website of Alkhabeer Capital www.alkhabeer.com.

Alkhabeer REIT is a Sharia-compliant, closed-ended publicly traded real estate investment fund. It was listed on the “Tadawul” on 20 March 2019 corresponding to 13 Rajab 1440. 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% oversubscription and saw its assets under management (AUM) increase by 70% to more than SAR 1.7 billion.

Alkhabeer Capital, headquartered in the Kingdom of Saudi Arabia, specializes in Shari'a compliant investments and financial services. It is authorized by the Capital Market Authority (CMA), license number 07074-37.

About Alkhabeer REIT 

Alkhabeer REIT is a closed-end real estate investment traded fund that aims to achieve continuous rental returns and periodic cash dividends. The duration of the fund is 99 years and the total value of its assets after the second additional offering is 2,062 million Saudi riyals. This document does not represent an offer of purchase, subscription or participation in any way in Alkhabeer REIT Fund. The document (or any part thereof) does not constitute basis and should not be relied upon to do the foregoing or an incentive to enter into any contract of any kind. All potential investors should carefully read Alkhabeer REIT Fund’s Terms and Conditions, including what is stated about investment risks, and its other documents before making a decision, through Alkhabeer Capital’s website: www.alkhabeer.com. This investment is not a cash deposit with a local bank. The investment’s value and any other verified income may rise or fall. All investors who want to invest, must reach their decision by consulting with their financial and legal advisers, as well as assess all risks that are involved in the investment. The targeted and expected results cannot be guaranteed that they will be achieved. In addition, past performance does not guarantee future results for the Fund. An investor's investment in the Fund is an acknowledgment that he or she is informed and has accepted the Terms and Conditions of the Fund. Alkhabeer Capital invests in the Fund. Investment in the Fund is subject to fees as mentioned in the Terms and Conditions.

About Alkhabeer Capital

Alkhabeer Capital is regulated by the Capital Market Authority (CMA), and is licensed for the following activities of: Dealing, Custody, Managing Investments and Operating Funds, Arranging, and Advising with license no. 07074-37 and CR No: 4030177445, Headquartered in An Nuzhah District, Madinah Road, P.O Box 128289, Jeddah 21362. It provides innovative world-class investment Shari'a-compliant products and solutions to institutions, family groups and individual investors.

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