What you need to know about Al Rajhi REIT

Al Rajhi REIT Fund - Details

Fund structure

Close ended, Sharia-compliant REIT Fund

Offering period

Ten business days

Investment Objective

Invest in developed properties that generate regular income

IPO amount

SAR 426.7 mln

Fund’s target size

SAR 1.621 bln

Value of in-kind subscriptions

SAR 795.3 mln

Total number of units following IPO

122.2 mln

Total assets following IPO

13

Weighted average of lease expiry period

7.2 years

Properties’ occupancy level

98.93 percent

Target net yield in 2018

6.16 percent

Lock-up Period

Al-Rajhi Capital (The Fund manager) owns 9.75 percent shareholding into the fund’s capital. This shareholding is subject to a two-year lock-up period from the date of listing (i.e. the Company cannot sell out this stake during the said period).

Management fee

0.80 percent annually of fund’s total value after expenses

Subscription fee

2 percent of the investment value (charged at the time of subscription)

Custody service fee

The fund will pay SAR 100,000 to the custodian on a quarterly basis

Financing

The fund manager can on behalf of the fund secure Sharia-compliant financing at 50 percent maximum of the total value of the fund’s assets

Minimum investment

SAR 1,000

Maximum investment

SAR 60 mln

Fund manager

Al Rajhi Capital

Custodian

KASB Capital

Fund term

99 years from the listing date, renewable upon the CMA approval

Dividends

90 percent of the fund’s income on a semi-annual basis

Fund trading

The trading method applicable on Tadawul

IPO Proceeds

Use                     

Amount

Percentage of Total

Acquisition of ARC Real Estate Income Fund

1005.2

62.0%

Acquisition of GCC Real Estate Fund

190.0

11.7%

Acquisition of Blue Tower (Al-Khobar) and Lulu’ah Warehouse (Riyadh)

425.7

26.2%

Cash in hand

1.0

0.1%

Total

1621.9

100.0%

Asset Breakdown

Asset

Location

Sector

Annual Targeted Rent 2018 (SAR mln)

Mode of acquisition in REIT

Acquisition Value

Panda

Rawda Dist., Jeddah

Retail

2.41

In Kind Subscription

67.44

Panda

Madain Al Fahad Dist., Jeddah

Retail

2.52

In Kind Subscription

48.59

Panda

Khamis Mushait

Retail

2.74

In Kind Subscription

47.99

Panda

Marwa Dist., Jeddah

Retail

9.92

In Kind Subscription

217.60

Lulu

Riyadh

Retail

15.27

In Kind Subscription

225.63

Anwar Plaza

Riyadh

Retail

4.42

In Kind Subscription

62.24

Narjis Plaza

Riyadh

Retail

4.28

In Kind Subscription

61.28

Rama Plaza

Riyadh

Retail

4.69

In Kind Subscription

69.40

Jarir Al Ahsa

Riyadh

Retail

5.23

In Kind Subscription

72.17

Al Faris Intl. School

Riyadh

Education

10.00

In Kind Subscription

132.82

Al Andalus

Jeddah

Offices/showrooms

11.17

In Kind Subscription

190.00

Blue Tower

Al Khobar

Offices/showrooms

18.31

IPO Funding

227.00

Lulu’ah Warehouse

Riyadh

Warehouses

13.61

IPO Funding

198.70