Mulkia REIT’s IPO 20% complete, raises SAR 3.9 bln

The initial public offering (IPO) of Mulkia-Gulf Real Estate Investment Trust (REIT) was 20 percent completed, after around 27,844 subscribers raised up to SAR 3.95 billion, Mulkia Investment Co. said in a statement.

The total fund units, which are valued at SAR 198.5 million, will be equally allocated to interested investors, and refunds will be paid during the next week.

The new vehicle will enable investments in a diversified real estate portfolio, backed by its geographical and sector diversification, stated VP Asset Management, Hisham Ahmed Tuffaha.

The fund, which will likely provide investments in Riyadh, Jeddah, and Dammam, has SAR 600 million in investments and around SAR 46.2 million worth of total lease contracts, Tuffaha noted, adding that the fund manager is expected to pay 90 percent of lease fees to unit holders.

The new fund is seeking to study new investment opportunities over the coming period.

Last month, CMA approved a request from Mulkia Investment to offer, register and list units of Mulkia-Gulf REIT on Tadawul, Argaam reported.

Mulkia-Gulf REIT is the seventh REIT listed on the Saudi stock exchange.