Jadwa REIT Saudi Fund will start trading on Saudi Stock Exchange (Tadawul) today under the code 4342, with a daily price fluctuation limit of 10 percent per unit.
The fund’s initial public offering (IPO) in January was 120.9 percent oversubscribed, with 57,600 investors subscribing to 47.4 million units.
A minimum of 50 units per subscriber were allotted, while the remaining units were allotted on a pro rata basis of 81.77 percent for each subscription request above the minimum subscription.
Jadwa REIT Saudi is a sharia-compliant closed real estate investment fund with a target size of SAR 1.58 billion.
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Fund's Profile |
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Fund |
Jadwa REIT Saudi. Close ended, Sharia-compliant |
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Fund Manager |
Jadwa Investment |
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Investment objectives |
Invests in income-generating, developed real estate assets all over the Kingdom except Mecca and Medina |
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Size |
SAR 1.58 bln |
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Offering size |
SAR 474 mln |
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Subscription value |
SAR 1.02 bln |
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Fund manager’s subscription |
SAR 89.44 mln |
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Total number of units after IPO |
158 mln |
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Unit price |
SAR 10 |
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Fund duration |
99 years from listing date and could be extended for a similar period, after obtaining board and CMA approvals |
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Subscription fees |
2% from subscription amount |
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Management fees |
0.75% from net assets annually |
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Cash Dividend |
Quarterly distributions. Annual dividend shall be no less than 90% of net income excluding capital gains. |
Jadwa REIT Saudi’s asset base comprises five real estate assets worth SAR 1.55 billion, located mainly in Riyadh, Dammam and Al-Khobar.
The assets include residential, commercial, and educational properties as well as warehouses, built over 428,200 square meters.
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Jadwa REIT Saudi Properties |
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Property |
City |
Sector |
Land area (000’ m²) |
Building area (000’ m²) |
Rent contract duration |
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Marvela residential compound |
Riyadh |
Residential, Commercial |
73.2 |
158.7 |
5 |
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Al Maarefa College |
Riyadh |
Educational |
18.1 |
41.8 |
20 |
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Al Solay Warehouse |
Riyadh |
Warehouses, offices, shops |
218.9 |
143.4 |
5 |
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Al Youm Newspaper Tower |
Dammam |
Commercial, offices |
4.8 |
39.2 |
7 |
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Al Fanar Residential & Commercial Compound |
Al Khobar |
Residential, Commercial |
62.5 |
45.0 |
8 for residential, 5 for commercial |
The fund seeks to generate SAR 129.96 million in leasing income in 2018, with a gross return of 8.39 percent and a net return of 7.3 percent annually.
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Targeted Returns |
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Year |
Net rentals (SAR mln) |
Gross returns on initial assets* |
Gross fund returns * |
Net fund returns * |
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2018 |
129.96 |
8.39% |
8.23% |
7.30% |
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2019 |
130.32 |
8.41% |
8.25% |
7.32% |
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2020 |
131.39 |
8.48% |
8.32% |
7.39% |
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2021 |
131.87 |
8.52% |
8.35% |
7.42% |
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2022 |
132.25 |
8.54% |
8.37% |
7.44% |
* Returns were calculated on the assumption that assets will be acquired before 2018 end.
Share prices of seven Tadawul-listed REIT funds have dropped, compared to the time of listing, with Mulkia REIT dropping 14 percent as of Feb. 8.
Meanwhile, Aljazira REIT and Taaleem REIT have risen 60 percent and 9 percent, respectively.
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REIT Funds Performance |
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REIT |
Fund Size (SAR mn) |
Listing Price (SAR) |
Closing as of Feb. 8, 2018 (SAR) |
Variation |
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Aljazira REIT |
118.0 |
10.00 |
15.95 |
+60% |
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Taleem REIT |
285.0 |
10.00 |
10.90 |
+9% |
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Jadwa REIT Al Haramin |
660.0 |
10.00 |
9.48 |
(5%) |
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Musharaka REIT |
880.0 |
10.00 |
9.50 |
(5%) |
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Riyad REIT |
500.0 |
10.00 |
9.27 |
(7%) |
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AlAhli REIT (1) |
1,375.0 |
10.00 |
8.98 |
(10%) |
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Al Ma’athar REIT |
613.7 |
10.00 |
8.85 |
(12%) |
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Al Masha’ar REIT |
572.4 |
10.00 |
8.77 |
(12%) |
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Mulkia Gulf REIT |
600.0 |
10.00 |
8.63 |
(14%) |
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Jadwa REIT Saudi |
1,580.0 |
10.00 |
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