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05 December 2016
The initial public offering (IPO) of the Eskan Bank Realty Income Trust (REIT), which opened on Nov. 21 for two weeks, will close on Tuesday (Dec. 6).
The BD14.4 million offering represents 72.9 percent of the trust’s total size of BD19.8 million and has a target of 6.5 percent in net distributable income payable semi-annually.
This Shariah-compliant offering is reserved for Bahraini and GCC nationals, and is open to individual and institutional applicants.
Securities & Investment Company (SICO) is the mandated lead manager, and also the sub-investment manager and dedicated market maker while Bahrain Islamic Bank (BisB) has been appointed as the receiving bank.
Khalid Abdulla, GM, Eskan Bank, provided details of the initial two Bahraini properties comprising the REIT, which are wholly owned by the trust.
“The Eskan Bank REIT enables investors to share in a diversified portfolio of properties; namely, Segaya Plaza and Danaat Al Madina, offering diversification within the real estate sector with primary exposure to retail, office and residential segments, thereby spreading the risk of owning individual properties.”
The properties currently have an occupancy rate of over 85 percent and the trust intends to increase its Shariah-compliant property portfolio.
“While the occupancy rate continues to gain momentum, we have structured a performance supplement into the Trust, enhancing its attractiveness to investors, and providing an intention by the investment manager to supplement the actual return of the trust should it be below 6 percent as the occupancy increases,” he added.
Najla Al-Shirawi, CEO of SICO, stated: “The minimum subscription is BD500, and allotment priority will be given to individual Bahraini applicants and thereafter all other investor categories on a pro rata basis.
“Investors will have the flexibility to trade their units upon listing on the Bahrain bourse, with a dedicated market maker providing additional liquidity on an ongoing basis,” she added.
The initial public offering (IPO) of the Eskan Bank Realty Income Trust (REIT), which opened on Nov. 21 for two weeks, will close on Tuesday (Dec. 6).
The BD14.4 million offering represents 72.9 percent of the trust’s total size of BD19.8 million and has a target of 6.5 percent in net distributable income payable semi-annually.
This Shariah-compliant offering is reserved for Bahraini and GCC nationals, and is open to individual and institutional applicants.
Securities & Investment Company (SICO) is the mandated lead manager, and also the sub-investment manager and dedicated market maker while Bahrain Islamic Bank (BisB) has been appointed as the receiving bank.
Khalid Abdulla, GM, Eskan Bank, provided details of the initial two Bahraini properties comprising the REIT, which are wholly owned by the trust.
“The Eskan Bank REIT enables investors to share in a diversified portfolio of properties; namely, Segaya Plaza and Danaat Al Madina, offering diversification within the real estate sector with primary exposure to retail, office and residential segments, thereby spreading the risk of owning individual properties.”
The properties currently have an occupancy rate of over 85 percent and the trust intends to increase its Shariah-compliant property portfolio.
“While the occupancy rate continues to gain momentum, we have structured a performance supplement into the Trust, enhancing its attractiveness to investors, and providing an intention by the investment manager to supplement the actual return of the trust should it be below 6 percent as the occupancy increases,” he added.
Najla Al-Shirawi, CEO of SICO, stated: “The minimum subscription is BD500, and allotment priority will be given to individual Bahraini applicants and thereafter all other investor categories on a pro rata basis.
“Investors will have the flexibility to trade their units upon listing on the Bahrain bourse, with a dedicated market maker providing additional liquidity on an ongoing basis,” she added.
© Arab News 2016
