Jadwa REIT Saudi Fund’s capital increase offering 714% oversubscribed

Logo of Jadwa REIT Saudi Fund

Jadwa Investment, a leading investment management and advisory firm in the Middle East, announced today that it has successfully completed the capital increase offering of Jadwa REIT Saudi Fund. Through this offering, Jadwa is increasing the fund’s total asset value across both in-kind and cash subscriptions by SAR 370 million, or 16.9%, to nearly SAR 2.56 billion.

The fund offered SAR 229.05 million in cash subscriptions and received 30,582 requests from institutional and retail investors with a total value of SAR 1.635 billion, resulting in a 714% oversubscription. Based on the allocation mechanism disclosed in the supplementary annex of the fund’s terms & conditions, the additional units will be allocated on a pro-rata basis, based on the size of subscriptions of registered unitholders as of 02/09/2021, the day on which the unitholders voted to approve the capital increase. The unitholders’ subscriptions totaled SAR 1.2 billion, equivalent to a 524% coverage of the offering.

Jadwa REIT Saudi Fund is a closed-end, Shariah-compliant, real estate investment traded fund with a term of 99 years. Its aim is to offer investors a stable and continuous source of income by investing in top-tier real estate assets across key cities in Saudi Arabia. The proceeds from the additional offering will be used mainly to acquire The Boulevard Riyadh, a luxury retail and office complex in the north of Riyadh.

Commenting on the offering, Tariq Al-Sudairy, Managing Director and CEO of Jadwa Investment, said, “We are very pleased with the strong investor demand for Jadwa REIT Saudi Fund and its acquisition of The Boulevard Riyadh. It is further proof of the success of our real estate investment strategy and the attractiveness of the real estate market in the Kingdom.”