Al Rajhi REIT IPO to close January 14

Al Rajhi REIT Fund’s initial public offering (IPO) will close on January 14, fund manager Al Rajhi Capital said. The offering started on January 1, with 42.67 million units on offer at SAR 10 each.

Al Rajhi Capital has targeted a fund size of SAR 1.62 billion; and subscription is at a minimum value of SAR 1,000.

The Shariah-compliant fund aims to acquire or invest in income generating commercial, office and educational assets, as well as warehouses. The assets are located mainly in cities across the Kingdom, with the exception of Makkah and Madinah.

It will distribute at least 90 percent of the fund’s annual net income in cash dividends, over the fund term on a semi-annual basis.

Al Rajhi REIT’s preliminary portfolio comprises 13 high-quality assets that generate income at the end of January and July of every year. It will not invest in white land.