Swicorp Wabel REIT targets net yield of 7.7% in 2018

Swicorp Wabel REIT gives a targeted net yield to investors of 7.7 percent in 2018, and up to 8.30 percent in 2020, with an average of 8.06 percent for 2018-2020.

The fund plans to distribute no less than 90 percent of its income to unit holders, fund manager Swicorp Company said.

The following table shows the three year targeted return on equity:

The asset base of the sharia-compliant fund includes four fully developed and income-generating shopping malls, namely the Al Makan Malls located in Riyadh, Tabuk, Hafr Al-Batin, and Dawadmi, with an average occupancy rate of 96.38 percent.

The properties are anchored by 420 major local and international retailers, with long-term contracts. Most contracts include an annual increase clause.

Wabel Alarabia for Investment, the main owner of the fund’s assets, owns 23 shopping centers under the Al Makan Mall brand, including the fund’s four malls.

Swicorp Wabel REIT offers 35.4 million units at SAR 10 per unit, totaling SAR 354 million. This represents 30 percent of the fund size of SAR 1.18 billion.

The fund’s initial public offering (IPO) started on March 19, with subscription for 15 working days until April 8, through receiving entities namely Bank Albilad, Banque Saudi Fransi, Al Rajhi Bank, NCB, and Aljazira Capital, as well as their websites, with a minimum subscription of SAR 500.