Alkhabeer REIT Fund to debut on Tadawul today

Alkhabeer REIT Fund will start trading on Saudi Stock Exchange (Tadawul) today, Wednesday, March 20, Tadawul said in a statement.

The units will be listed on the Real Estate Investment Traded Funds (REITs) sector under the code 4348, with a daily price fluctuation limit of 10 percent each.

Alkhabeer Capital closed the initial public offering (IPO) of its newly-launched Alkhabeer REIT Fund in December, Argaam reported.

The IPO was 104 percent oversubscribed and raised over SAR 247 million, from 25,124 individual and institutional subscribers participating in the offering.

Alkhabeer REIT Fund is the first to be listed on Tadawul this year, bringing the total number of REITs to 17. Nine REITs were listed last year.

Sharia-compliant Alkhabeer REIT targets an asset base of seven income-yielding real estate properties in prime locations in Riyadh, Jeddah, and Tabuk.

Assets include offices, residential units, and retail space on a 139,760 square meters (sq m) of built-up areas (BUAs).

Alkhabeer REIT offered 24 percent of assets at a total value of SAR 237 million. It targets an annual return of 9 percent, to be paid on a quarterly basis.

Alkhabeer Capital had a real estate portfolio of more than SAR 3.6 billion as on December 31, 2017, managed by ten REITs, which own several realty projects in Jeddah, Riyadh, Al Khobar and Makkah.

Al Khabeer REIT Profile
Fund	Al Khabeer Real Estate Investment Traded REIT Fund, sharia-compliant REIT
Fund manager	Al Khabeer Capital
Investment objectives	Investing at least 75% of the fund’s value in income-generating real estate properties within the Kingdom (except for Makkah & Medina) where at least 90% of the fund’s net profit shall be distributed to unit holders
Fund size	SAR 664.42 mln
Fund term	99 yrs from the listing in Saudi market renewable for similar periods
Targeted assets	7 income generating assets
Management fees	9% annually from annual rent but not exceeding 0.75% from total fund’s value
Cash dividend	quarterly cash dividend of not less than 90% of fund annual net profit to be paid within 30 days from the beginning of each quarter or at least once a year, excluding capital gains from selling assets and other investment.

Targeted Properties (SAR mln)
Property	City	Sector	Development Status	Acquisition value (SAR mln)	Net annual rent (SAR mln)
Al Malga compound	Riyadh	Residential	Developed	314	18.16
Gallery mall	Tabuk	Retail	Under construction	155	21.24
Plazo Center	Riyadh	Retail	Developed	93.3	7.62
Home Works center	Riyadh	Retail	Developed	78	5.94
Ahlan Court	Jeddah	Retail	Developed	70	6.96
Bin 2 Center	Jeddah	Retail /office	Developed	90	8.95
Elite commercial Complex	Jeddah	Retail/office	Developed	160	15.91
Total		139.76			84.78

Performance of Saudi REITs Since Listing
REIT	Fund Size (SAR mln)	Listing Price (SAR)	Closing as of March 19 (SAR)	Variation
Al Khabeer REIT	664.4	10.00	--
Aljazira REIT	118.0	10.00	13.48	+35%
Taleem REIT	285.0	10.00	10.08	+1%
MEFIC Saudi	1,230.0	10.00	9.39	(6%)
Bonyan REIT	1,628.8	10.00	9.16	(8%)
Jadwa Saudi	1,580.0	10.00	8.60	(14%)
Al Rajhi REIT	1,621.9	10.00	8.44	(16%)
Derayah REIT	1,172.0	10.00	8.31	(17%)
Mulkia REIT	600.0	10.00	8.31	(17%)
Swicorp Wabel REIT	1,180.0	10.00	8.22	(18%)
Musharaka REIT	880.0	10.00	8.19	(18%)
SEDCO Capital REIT	650.00	10.00	7.77	(22%)
Al Ahli REIT (1)	1,375.0	10.00	7.78	(22%)
Riyad REIT	1,633.0	10.00	7.70	(23%)
Jadwa Al Haramain	660.0	10.00	7.60	(24%)
Al Ma’athar REIT	613.7	10.00	7.60	(24%)
Masha’ar REIT	572.4	10.00	7.14	(29%)

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