Al Rajhi REIT IPO closes today

Al Rajhi REIT Fund’s initial public offering (IPO) will close today.

The offering started on January 1, targeting a fund size of SAR 1.62 billion, as the fund manager Al Rajhi Capital offered 42.67 million units at SAR 10 each, with a minimum subscription 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 fund does not invest in white land, as its portfolio includes 13 fully developed income-generating properties.

The fund will distribute at least 90 percent of its annual net income in cash dividends, over the fund term on a semi-annual basis, with a net return on assets (RoA) of 6.16 percent this year.