Subscription to Alinma Hospitality REIT Fund IPO starts today

اليوم.. بدء الاكتتاب في صندوق "الإنماء ريت الفندقي"

Logo of Alinma Hospitality REIT Fund

Subscription to Alinma Hospitality REIT Fund’s offering will start today, Oct. 30 and run until Nov. 7.

The fund size reached SAR 1.020 billion. It will offer 51.14 million units, representing 50% of the total.

In September, Alinma Investment obtained the CMA's approval on offering Alinma Hospitality REIT Fund’s units in an initial public offering (IPO) on the Saudi Exchange (Tadawul) as a REIT, Argaam earlier reported.

The fund aims to generate sustainable and growing cash dividend for the unitholders and develop the fund assets via the direct investment in income-generating and developed properties.

The fund will largely invest in hotels, hospitality, and tourist accommodation, and may partially invest in the real estate projects, provided that 75% of its investments are in income-generating assets.

The fund initially plans to acquire five income-yielding freehold real estate properties in the hotel, hospitality and tourism accommodation segments.

These assets are Vittori Palace Hotel and Residence in Riyadh, Ascott Rafal Olaya Riyadh, Hotel Comfort Inn Suites Jeddah, Comfort Hotel - Riyadh Olaya and Clarion Hotel Jeddah Airport.

Seera Group Holding announced its contribution with three real estate assets in Riyadh and Jeddah to the establishment of Alinma Hospitality REIT Fund, to be managed by Alinma Investment Co.

Seera indicated the real estate assets are Clarion Hotel Jeddah Airport, Hotel Comfort Inn Suites Jeddah, Comfort Hotel - Riyadh Olaya.

The fund will buy the three assets from Seera Hospitality Co., and the payment will partially be through in-kind units in the fund.

Clarion Hotel Jeddah Airport, and Comfort Hotel-Riyadh Olaya will be released by Seera, and the lease contracts would represent 22% of the fund’s total targeted returns. Hotel Comfort Inn Suites Jeddah will be operated by Seera.

Key Information
Fund	Alinma Hospitality REIT Fund
Type of Fund	Closed-end real estate investment fund, compliant with Shariah, and established by virtue of the regulations of the real estate investment funds.
Investment Objectives	The fund aims to generate sustainable and growing cash dividend for the unitholders and develop the fund assets via direct investment in income-generating and developed properties
Fund Size	SAR 1.020 bln
Value of In-kind Units	SAR 508.62 mln
Size of Targeted Offering	SAR 511.40 mln
Percentage of Cash Offering	50.14% of targeted value
Number of Offered Units	51.14 mln
Price / Unit	SAR 10
Number of Offered Units To Public	41.14 mln
Subscription of Fund Manager	10 mln units
Offering Period	Units will be offered as of Oct. 30. The offering will run for seven days until Nov. 7. The period can be extended upon the CMA notice.
Receiving Entities	Alinma Investment, Alinma Bank, Al Rajhi Bank, Riyad Bank
Minimum Subscription	50 units
Subscription Fees	None
Fees of Transactions	The fund will pay fees at maximum of 0.75% of the value of each transaction to the fund manager, in return for the due diligence process, directly after completing the transaction. These fees are not applied to the foundation portfolio.
Custodian Bank Fees	SAR 100,000 per annum (subject to changes) to SAR 300,000 maximum
Fund Manager	Alinma Investment
Fund Term	99 years as of listing date
Dividend Payment Policy	In line with the financing deals concluded by the fund, the fund manager targets to pay dividend at least twice a year, at not less than 90% of net profit. The distributions are likely in January and July of every year, with the exception of the capital gains from selling any of the fund assets, as they will be reinvested in developed properties and can generate recurring income with the aim of boosting the fund assets.

Unitholders/ Details of Subscription
Entity/ Type	No. of Units (mln units)	Ownership%
Public (Cash)	41.14	40.33%
Fund Manager Subscription (Cash)	10.00	9.80%
Seera Hospitality (In-Kind)	17.26	16.92%
Ashaad (In-Kind)	33.60	32.94%
Total	1020.0	100%

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