Alkhabeer REIT inks credit facility deal with Al Rajhi Bank

Saudi-based asset management company, Alkhabeer Capital, announced that Alkhabeer REIT has signed a facility agreement valued at SAR 420 million with Al Rajhi Bank.

The Shari’ah-compliant facility agreement will have a tenor of five years, providing financing of SAR 420 million, out of which, SAR 340 million will be used by Alkhabeer REIT to finance part of the targeted assets, and SAR 80 million will be used for future acquisitions of income-generating assets.

The SAR 1 billion Alkhabeer REIT, which successfully closed its initial public offering (IPO) in November 2018, was oversubscribed at 104 percent and raised SAR 247 million from 25,124 retail and institutional investors.

It is currently targeting net annual returns of 9 percent which are among the highest rates in the market.

“Having a strong credit record would support Alkhabeer REIT’s future growth potential. Thus, since its inception, we have been keen on building the Fund’s credit record with the Kingdom’s banks and financial institutions,” Ahmed Saud Ghouth, CEO of Alkhabeer Capital, said.

“This agreement is the result of Alkhabeer Capital’s unique relationship with Al Rajhi Bank, and we look forward to further strengthening this partnership,” he added.