Mulkia REIT opens today subscription to additional public offering for asset value increase

Logo of Mulkia Gulf Real Estate REIT Fund

The subscription to increase the total asset value of  Mulkia Gulf Real Estate REIT Fund through an additional public offering started today, March 16, and will run for 10 working days until March 29.

Mulkia Investment Co., the fund’s manager and operator, had set the subscription price for the additional units at SAR 6.68 per unit.

Last February, the Capital Market Authority (CMA) approved the fund’s application to increase its total assets value through issuing additional units for acquiring real estate assets.

The fund's capital increase will range between SAR 250 million maximum and SAR 114.86 million minimum.

Subscription is entitled to unitholders of record on the day of the meeting designated to approve the asset value increase and those wish to subscribe to additional units.

It is also available for natural persons of Saudi and GCC citizenship investors, and those residing in the Kingdom as per resident identity. This is in addition to institutions, companies, investment funds, other entities and legal persons that are based in Saudi Arabia, along with qualified foreign investors and GCC investors.

As many as 3.56 million units will be offered in-kind to sellers of real estate assets, as per their ownership stake.

As for cash units, they will be allocated firstly to unitholders who were already registered on the day of the unitholders’ meeting to approve the fund’s assets value increase and those who wish to subscribe to additional units.

The allocation shall be a maximum of the ownership stake of each unitholder on the day of this meeting.

The remaining cash units will be allocated to unitholders of record on the day of the aforementioned meeting and those who wish to subscribe to additional units exceeding their own ownership stake.

Subsequently, units will be allocated proportional to the volume of the additional subscription for unitholders, without a maximum limit for subscribers.

As much as 20% of the remainder will be allocated to institutional investors. Surplus cash units, if any, will be allocated to registered and unregistered institutional and individual investors.

Mulkia Investment announced signing an agreement, in January 2022, to acquire Al Jadah mixed-use development in Riyadh. The property was purchased for SAR 335 million, excluding tax and brokerage commission fees, according to data available with Argaam.