Al Rajhi REIT announces unit allocation mechanism, subscription fees

Al Rajhi Capital announced the unit allocation mechanism and subscription fees in Al Rajhi REIT Fund’s public offering (IPO), the fund manager said in a bourse statement.

The units offered on the IPO will be allocated first to the registered unit holders on the day of the unit holders meeting to increase the fund’s total assets and potential buyers of the new cash units pro rata.

The remaining cash units (if any) will be allocated to the rest of the investors (non-unit holders) according to the fund manager’s decision.

Moreover, the company set subscription fees at 2% of the subscribed amount, payable by the investor in addition to the subscription amount.

“This fee applies to new investors and is not applicable to registered unit holders at the date of the unit holders meeting,” the statement highlighted.

Accordingly, the subscription fees will be returned to the registered unit holders at the date of the unit holders meeting.

The subscription period, which started today, Dec. 12, 2019, will run through Wednesday, Dec. 18.

In October 2019, unit holders approved increasing the total asset value of the fund from SAR 1.72 billion to a maximum of SAR 2.41 billion by acquiring new real estate assets.