Mulkia Gulf Real Estate Investment Fund will start trading on the Saudi Stock Exchange (Tadawul) on Sunday, November 5, under the code 4336, the exchange said in a statement.
The daily price fluctuation limit will be at 10 percent per unit.
Mulkia REIT is a Sharia-compliant real estate investment traded fund with a target size of SAR 600 million.
The fund, which is managed by Mulkia Investment Co., aims to generate a regular income through investment in high-yield real estate assets across the Kingdom.
The initial public offering (IPO) of Mulkia REIT, which was 20 times oversubscribed, raised SAR 3.95 billion.
Mulkia - Gulf Real Estate REIT Fund is the seventh real estate investment traded fund to be listed on Tadawul, after Riyad REIT, Jadwa REIT Al Haramain Fund, and AlJazira Mawten REIT, Taleem REIT, AlMa’athar REIT and Musharaka REIT.
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Mulkia Gulf REIT Profile |
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Fund |
Mulkia Gulf REIT Fund, a Sharia compliant REIT fund. |
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Investment Purposes |
Generating periodic income for investors through investing in income-generating real estate assets within Saudi Arabia and distributing no less than 90% of net profit to unit holders. |
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Fund Size |
SAR 600 mln |
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Cash offering size |
SAR 213.5 mln |
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Unit Price |
SAR 10 |
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Subscription Fees |
2% to be deducted upon subscription |
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Management Fees |
1% |
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Other fees |
Other fees mentioned in the funds terms and conditions |
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Fund Manager |
Mulkia Investment |
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Fund Duration |
99 years from listing |
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Cash Dividend |
Annual cash dividend for unit holders of no less than 90% of the fund’s net profit and at least once a year. To be distributed within 90 days from fiscal year end. |
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Fund Trading |
Similar to trading of equity shares |
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Major Unit Holders |
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Unit holders |
Units’ value (SAR mln) |
Percent to total assets |
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Abdullatif Alissa Group Holding |
121.5 |
20.25 % |
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Gulf Real Estate Co. |
265.0 |
44.15 % |
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Fund manager |
15.0 |
2.50 % |
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Public |
198.5 |
33.10 % |
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Total |
600.0 |
100 % |
The fund is looking to acquire several income-generating properties, falling under four main assets across Riyadh, Jeddah and Dammam.
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Mulkia Gulf’s real estate portfolio |
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First Property |
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Name |
Al Yasmeen residential building |
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Location |
Al Yasmeen, Riyadh |
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Land Area |
2,309m² |
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Building area |
5,303m² |
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Number of floors |
3.5 |
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Components |
41 apartments between 97m² and 152 m² |
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Age |
4 years |
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Total acquisition cost |
SAR 18.7 mln |
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Tenant |
Almarai Co. |
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Lease date/ duration of contract |
From Nov. 21, 2015/ 5 years |
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Total rental value (during contract period) |
SAR 7.25 mln |
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Annual rent |
SAR 1.45 |
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Second Property |
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Name |
Industrial Commercial Technology Complex |
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Location |
Al Faisaliah neighborhood, Riyadh |
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Land Area |
45,749m² |
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Built-up area |
36,554m² |
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Number of floors |
1 |
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Components |
5 auto maintenance centers, two car showrooms and a spare parts center |
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Age |
7 years |
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Acquisition cost |
SAR 121.5 mln not including commission fees of SAR 1.22 mln |
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Block 6 |
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Land Area |
14,713m² |
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Built-up area |
12,150m² |
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Tenant |
Abdullatif Alissa Automotive Co. (AACO) |
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Lease date/ duration of contract |
From Jan. 1, 2017 until Dec. 31, 2021 |
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Total rental value (during contract period) |
SAR 10 mln |
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Annual rent |
SAR 2 mln |
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Block 7A |
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Land Area |
4,865m² |
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Built-up area |
1,850m² |
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Tenant |
Abdullatif Alissa Automotive Co. (AACO) |
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Lease date/ duration of contract |
From Jan. 1, 2017 until Dec. 31, 2021 |
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Total rental value (during contract period) |
SAR 3 mln |
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Annual rent |
SAR 0.6 mln |
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Block 7B |
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Land Area |
4,865m² |
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Built-up area |
1,835m² |
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Tenant |
AACO |
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Lease date/ duration of contract |
From Jan. 1, 2017 until Dec. 31, 2021 |
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Total rental value (during contract period) |
SAR 2 mln |
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Annual rent |
SAR 0.4 mln |
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Block 9 |
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Land Area |
6,098m² |
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Built-up area |
4,750m² |
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Tenant |
AACO |
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Lease date/ duration of contract |
From Jan. 1, 2017 until Dec. 31, 2021 |
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Total rental value (during contract period) |
SAR 4.77 mln |
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Annual rent |
SAR 0.954 mln |
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Block 10 |
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Land Area |
6,730m² |
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Built-up area |
5,233m² |
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Tenant |
Mohamed Yusuf Naghi Motors |
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Lease date/ duration of contract |
From Jan. 1, 2017 until Dec. 31, 2021 |
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Total rental value (during contract period) |
SAR 5.45 mln |
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Annual rent |
SAR 1.2 mln |
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Block 11 |
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Land Area |
7,341m² |
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Built-up area |
5,800m² |
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Tenant |
United Motors |
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Lease date/ duration of contract |
From July 8, 2012 until Dec. 31, 2022 |
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Total rental value (during contract period) |
SAR 7.83 mln |
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Annual rent |
SAR 1.45 mln until 2018, SAR 1.6 for remaining years |
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Plot 24 |
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Land Area |
6,000m² |
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Built-up area |
3,000m² |
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Tenant |
Alissa Universal Motors |
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Lease date/ duration of contract |
From Jan. 1, 2017 until Dec. 31, 2021 |
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Total rental value (during contract period) |
SAR 8.35 mln |
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Annual rent |
SAR 1.67 mln |
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Plot 25 |
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Land Area |
6,000m² |
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Built-up area |
3,000m² |
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Tenant |
Mohamed Yusuf Naghi Motors |
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Lease date/ duration of contract |
From Dec. 24, 2012 until Oct. 30, 2017 |
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Total rental value (during contract period) |
SAR 7.84 mln |
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Annual rent |
SAR 1.75 mln for final year before renewing the contract |
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Third Property |
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Name |
Dinar Commercial Building |
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Location |
Jeddah |
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Land Area |
4,761m² |
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Built-up area |
14,900m² |
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Number of floors |
4 |
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Acquisition cost |
SAR 124.5 mln not including commission fees of SAR 3.1mln |
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Tenant |
Saba Real Estate Co. |
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Lease date/ duration of contract |
7 years from evacuating the building for the company |
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Total rental value (during contract period) |
SAR 69.7 mln |
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Annual rent |
SAR 9.96 |
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Fourth Property |
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Name |
West Avenue Building |
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Location |
Dammam |
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Land Area |
5,700m² |
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Built-up area |
5,600m² |
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Number of floors |
1 |
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Acquisition cost |
SAR 309 mln not including commission fees of SAR 3.1mln |
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Tenant |
Gulf Real Estate Co. |
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Lease date/ duration of contract |
5 years from evacuating the building for the company when acquired by Gulf Real Estate REIT to maintain the fund’s assets for 20 years |
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Total rental value (during contract period) |
SAR 123.5 mln |
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Annual rent |
SAR 24.7 |
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Expected rent income from Mulkia Gulf REIT Properties |
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Period |
2018 |
2019 |
2020 |
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Al Yasmeen Building |
1.45 |
1.45 |
1.45 |
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Industrial, Commercial Technology Complex |
10.03 |
10.03 |
10.03 |
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Dinar Building |
9.96 |
9.96 |
9.96 |
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West Avenue |
24.72 |
24.72 |
24.72 |
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Total rent contracts |
46.16 |
46.16 |
46.16 |
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Rent to acquisition cost |
8% |
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Rent to fund size |
7.7% |
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Performance of Saudi REITs Since Listing |
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REIT |
Listing Price |
Closing as of Nov. 2 |
Variation |
|
Aljazira REIT |
10.00 |
19.22 |
+92% |
|
Taleem REIT |
10.00 |
12.54 |
+25% |
|
Jadwa Al Haramain |
10.00 |
10.59 |
+6% |
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Riyad REIT |
10.00 |
10.49 |
+5% |
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Al Ma’athar REIT |
10.00 |
9.97 |
(0.3%) |
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Musharaka REIT |
10.00 |
9.87 |
(1%) |
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