Al Maather REIT IPO to begin July 2

Saudi Arabia’s market regulator, the Capital Market Authority (CMA) approved listing units of Al Maather REIT on the Saudi Stock Exchange (Tadawul) as a Real Estate Investment Traded Fund.

Al Maather is a closed-ended, Sharia-compliant real estate investment traded fund.

The fund targets capital of SAR 613.7 million and will be floated in an initial public offering (IPO) from July 2 to July 6, 2017.

The REIT will invest at least 75 percent of its total assets in developed real estate assets and will not invest in vacant land.

Al Maather, which is managed by Osool & Bakheet Investment Co., aims to generate current income by investing in income-producing real estate assets in Saudi Arabia.

The fund units will be traded in the same way as shares listed on Tadawul.

Osool & Bakheet is targeting to distribute an annual cash dividend of no less than 90 percent of the REIT’s net profit to unitholders in the first quarter, ending in March.

The fund’s initial investments are located in Riyadh. However, it may diverse its investments by investing a maximum of 25 percent of its total asset in real estate located inside the Kingdom.

Three other REITs have also been listed on Tadawul so far: Aljazira Mawten REIT in February, Jadwa REIT Al-Haramain Fund in April, and Taleem REIT last month.