MEFIC REIT’s IPO closes tomorrow

MEFIC REIT’s initial public offering (IPO) will close tomorrow, May 15, after it was extended for additional 10 days.

The offering started on April 4, and was expected to run for 20 working days until May 1.

The REIT said its asset base comprises eight real estate assets worth SAR 1.2 billion, located in Saudi Arabia and the UAE. These assets include offices, residential units, warehouses, hotels and retail space.

The fund announced it will ensure a minimum return of five percent to unit holders, although annual returns may surpass that percentage, based on market conditions. It targets a net return of 7.5 percent for 2018 that rises gradually to 7.9 percent in 2021.

It has a total size of SAR 1.23 billion, and is offering 87.95 million units in initial public offering (IPO) at SAR 10 per unit (71.5 percent of capital).