AlAhli REIT Fund (1) is targeting leasing revenues of SAR 105.12 million in 2018, and aims to achieve a 7.64 percent gross return on equity (RoE) and a net return of 6.5 percent, NCB Capital said in the prospectus.

 

The first dividends to be distributed to unit holders will be based on financial statements for the period ending June 2018, it added.

 

The following table shows the target RoE for the REIT’s first five years at a unit price of SAR 10:

 

AlAhli REIT’s Total Targeted Returns (SAR mln)

Period

Total Leasing

Returns

Total Return

Targeted

Net Return

Targeted

2018

105.12

7.64 %

6.5 %

2019

114.47

8.32 %

7.2 %

2020

119.69

8.70 %

7.5 %

2021

123.21

8.96 %

7.8 %

2022

127.00

9.24 %

8.1 %

 

The fund plans to acquire the Alandalus Mall and the adjacent five-star Staybridge Suites Jeddah Alandalus Mall.

 

AlAhli REIT Fund's (1) initial public offering (IPO) was launched on Tadawul on Dec. 6 and will run until Dec. 19.

 

The sharia-compliant REIT, which is expected to be largest REIT in terms of assets, has SAR 1.375 billion in capital. It is offering 41.25 million units to retail investors at a minimum subscription price of SAR 10 per unit.

 

Cash Flow of Targeted Assets

Description

Shopping Mall

Hotel Tower

Net Cash Flow (SAR mln)

92.40

12.72

Occupancy Rate (%)

99 %

68.9 %

Comments 0

Be the first to comment

loader Train
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Market Indices

Created with Highstock 6.0.710:…10:0011:0012:0013:0014:0015:0011,700.0011,750.0011,800.0011,850.0011,900.00
Close : 11836.52 | Mar 9, 15:20

Quotes

Created with Highstock 6.0.710:…10:0011:0012:0013:0014:0015:007.037.057.087.107.13
Close : 7.08 | Mar 9, 15:00


Call Request

Argaam Investment Company has updated the Privacy Policy of its services and digital platforms. Know more about our Privacy Policy here.

Argaam uses cookies to personalize content, to provide social media features and analyze traffic, that we might also share with third parties. You consent to our cookies if you use this website