Bonyan REIT Fund will start trading on the Saudi Stock Exchange (Tadawul) today, Wednesday, July 25, with the code 4347, according to a bourse filing.
The daily price fluctuation limit per share will be 10 percent.
The fund’s initial public offering (IPO) kicked off on April 15 until May 3, 2018.
The fund offered 65.15 million units at SAR 10 per unit, accounting for 40 percent of its total units. The minimum subscription was SAR 1,000.
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Bonyan REIT Profile |
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Fund |
Bonyan Real Estate Investment Traded REIT Fund, sharia-compliant REIT |
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Investment objectives |
Investing in income-generating real estate properties inside and outside where at eat 90% of the fund’s net profit shall be distributed to unit holders on a semi-annual basis |
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Fund size |
SAR 1.628 bln |
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In-kind subscriptions |
SAR 977.28 mln. The fund manager will issue 97.72 mln units representing 60% of the fund units for real estate properties sellers. |
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Targeted assets |
Mainly acquiring 10 real estate assets in 4 Saudi cities and 1 UAE city with a total value of SAR 1.6 bln. |
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Unit’s price |
SAR 10 |
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Subscription fees |
None |
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Management fees |
0.5% annually from total fund value after deducting expenses |
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Custodian fees |
- 0.025% annually from total fund value - SAR 30,000 annually for Zakat declaration and financial statements - SAR 60,000 one-time expense for establishing a facility with an objective |
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Fund manager |
Saudi Fransi Capital |
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Fund term |
99 yrs from the listing in Saudi market. The term is renewable to similar periods after obtaining approvals from the fund’s board and the CMA |
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Valuators |
Knight Frank, ValueStart and Tathmen |
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Cash dividend |
Semi-annual cash dividend of not less than 90% of fund annual net profit to be paid at the end of Q2 and Q4 of each fiscal year |
Bonyan aims to invest in real estate assets inside and outside the Kingdom, and to distribute semi-annual cash dividend of no less than 90 percent of fund's annual net profit.
Dividend will be distributed at the end of the second and fourth quarters of every year.
The fund's asset base includes ten properties: four shopping malls, three hotels, two residential compounds, and one apartment building at City Walk Dubai.
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Bonyan REIT Asset Base |
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Total no. of assets |
10 real estate assets |
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No. of properties to be acquired (ownership) |
9 real estate assets |
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No. of assets to be acquired (usufruct right) |
1 property, and the fund will have the right to buy the property during the first five years of signing the contract at SAR 110 million |
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Developed assets |
10 real estate properties |
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Total cost |
SAR 1,604.74 million |
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Fund size |
SAR 1,628.81 million |
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Geographical presence |
Saudi Arabia (Riyadh, Abha, Jazan, Almadinah) UAE (Dubai) |
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Total rent in 2018 |
SAR 127.8 million |
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Net income for 2018 |
SAR 118.2 million |
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Net income ratio |
7.26 percent |
The REIT will invest at least 75 percent of its total assets in developed real estate assets and will not invest in vacant land.
It may diversify its investments by investing a maximum of 25 percent of its total asset in real estate located inside the Kingdom.
The Sharia-compliant fund is targeting annual rents of SAR 127.8 million this year.
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Bonyan REIT’s Asset Base |
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Asset |
City |
Value (SAR mln) |
40% of asset value |
Net annual rent 2018 *(SAR mln) |
Percentage of the fund size |
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Residential sector |
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Ar Rafiah Villa compound |
Riyadh |
190.0 |
-- |
14.92 |
11.66% |
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Al-Maather Villa Compound |
Riyadh |
5.50 |
-- |
0.54 |
0.34% |
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City Walk building (2B) |
Dubai |
273.00 |
-- |
10.25 |
16.76% |
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Hotels |
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Courtyard by Marriot |
Jizan |
90.0 |
-- |
6.31 |
5.52% |
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Residence Inn by Marriot |
Jizan |
55.50 |
-- |
4.00 |
3.41% |
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Al Rashed Residences |
Al Madinah |
42.60 |
28.40 |
7.08 |
2.62% |
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Commercial centers |
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Al Rashid Mall |
Jizan |
206.00 |
-- |
15.65 |
12.65% |
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Al Rashid Mega Mall |
Al Madinh |
505.50 |
-- |
32.82 |
31.03% |
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Al Rashid Mall** |
Abha |
223.20 |
148.80 |
34.58 |
13.70% |
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Al Rashid Strip mall |
Riyadh |
13.44 |
8.96 |
1.64*** |
0.83% |
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Total |
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1,604.74 |
186.16 |
127.79 |
98.5% |
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Capital restructuring fees |
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24.07 |
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1.5% |
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The fund’s total size |
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1,628.81 |
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100% |
*Estimated figures calculated by an independent advisor
** Usufruct right
***No contracts currently inked; however, figures were calculated by an independent advisor
Eleven Tadawul-listed REITs have dropped below the listing price, led by Mashaar REIT (23 percent) and AlMa'athar REIT (22 percent).
Meanwhile, prices of AlJazira Mawten REIT and Taleem REIT have increased at 52 percent and 11 percent respectively.
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Performance of Saudi REITs Since Listing |
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REIT |
Fund Size (SAR mln) |
Listing Price (SAR) |
Closing as of July 24 (SAR) |
Variation |
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Aljazira REIT |
118.0 |
10.00 |
15.18 |
+52% |
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Taleem REIT |
285.0 |
10.00 |
11.06 |
+11% |
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Jadwa Saudi |
1580.0 |
10.00 |
9.54 |
(5%) |
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Riyad REIT |
1633.0 |
10.00 |
8.98 |
(10%) |
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Jadwa Al Haramain |
660.0 |
10.00 |
8.72 |
(13%) |
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Al Rajhi REIT |
1621.9 |
10.00 |
8.57 |
(14%) |
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Musharaka REIT |
880.0 |
10.00 |
8.62 |
(14%) |
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SEDCO Capital REIT |
650.00 |
10.00 |
8.37 |
(16%) |
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AlAhli REIT (1) |
1375.0 |
10.00 |
8.20 |
(18%) |
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Derayah REIT |
1172.0 |
10.00 |
8.09 |
(19%) |
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Mulkia REIT |
600.0 |
10.00 |
7.94 |
(21%) |
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Al Ma’athar REIT |
613.7 |
10.00 |
7.79 |
(22%) |
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Masha’ar REIT |
572.4 |
10.00 |
7.73 |
(23%) |
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Bonyan REIT |
1628.8 |
10.00 |
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