Al Rajhi REIT Fund gets CMA nod to increase total assets value

Logo of Al Rajhi REIT Fund

The Capital Market Authority (CMA) gave the go-ahead for Al Rajhi Capital's request to raise Al Rajhi REIT Fund's total assets value by issuing additional units, according to the CMA website.

The approval was granted after the fund manager's request complied with the relevant requirements as per the Real Estate Investment Funds Regulations.

Prior to the unitholder meeting that will discuss increasing the fund's total assets value, the fund manager will publish the supplementary annex of the terms and conditions (T&Cs) on the fund manager's and the Saudi Exchange’s (Tadawul) websites.  

The supplementary annex will include all information about increasing the total assets value, in addition to all relevant information the unitholders need to know before voting, including information about the acquisition transaction and risk factors.

A voting without reading the T&Cs and their supplementary annexes carefully or fully reviewing their content may involve high risk. Therefore, unitholders should carefully read the T&Cs and their supplementary annexes in order to make a well-informed decision when voting on the increase of the total assets value. If the T&Cs and their supplementary annexes prove difficult to understand, it is recommended to consult with an authorized financial advisor.

The approval should never be viewed as an endorsement of the feasibility of increasing the fund's total assets value for the purposes of a transaction. It merely means that the regulatory requirements as per the Capital Market Law and its Executive Regulations have been met.