Al-Rajhi REIT Fund is a closed-end real estate investment fund compliant with Shariah standards, listed on the Saudi Stock Exchange 'Saudi Tadawul'. It was established on December 18, 2017, and is headquartered in the capital, Riyadh.
It was listed on 'Saudi Tadawul' on March 20, 2018. Its units are traded on the main market platform under the Real Estate Investment Trusts (REITs) sector, with the name (Al Rajhi REIT), symbol (4340), and ISIN (SA14GG523Q50). The fund's capital is SAR2.756 billion, according to the update on August 14, 2023.
The fund provides a convenient way for investors to access the real estate market by collectively owning real estate assets, earning periodic rental income, and benefiting from long-term capital appreciation to increase the return on investment.
Al-Rajhi REIT Fund activities
The offering of al-Rajhi REIT Fund units was approved by the Saudi Capital Market Authority on December 18, 2017. The fund operates in accordance with the Real Estate Investment Funds laws and the Instructions for Listed Real Estate Investment Funds issued by the Capital Market Authority. The initial capital of al-Rajhi REIT is SAR1.222 billion, divided into 122.2 million units, with an initial price of SAR10 per unit. The fund underwent an asset value increase process in the fourth quarter of 2019, during which 39.65 million units were issued at a price of SAR8.8 per unit. Consequently, the total number of issued units reached 161.85 million units.
In May 2023, the fund's capital increased to SAR2.756 billion, following the Capital Market Authority's approval on February 4, 2023, to raise the fund's total asset value by issuing additional units during the second additional offering period. A total of 113.75 million additional units were issued, bringing the total number of the fund's units to 275.6 million units after the increase in total asset value.
The duration of al-Rajhi REIT Fund is ninety-nine years, starting from the date the units were listed on the Saudi Stock Exchange on March 20, 2018. The fund's duration can be extended at the discretion of the fund manager, with prior approval from the fund's Board of Directors and the Capital Market Authority.
Al-Rajhi REIT Fund investments
The fund invests in developed real estate properties capable of generating periodic and rental income. It distributes a specified percentage of no less than 90 percent of the fund's annual net profits in cash to unit holders during the fund's duration. Starting from 2023, these distributions are made quarterly for the financial periods ending in March, June, September, and December.
Al-Rajhi REIT Fund is managed by al-Rajhi Capital, a closed joint-stock Saudi company registered in the commercial registry of the Kingdom under commercial registration number 1010241681. It is licensed by the Capital Market Authority under license number 37-07068.
Assets of al-Rajhi REIT Fund:
The assets of al-Rajhi REIT Fund include: Al-Baraem Schools, Riyadh. Rowad al-Khaleej International Schools, Riyadh. Rowad al-Khaleej International Schools, Dammam. NMC Specialty Hospital al-Salam, Riyadh. Lulu Hypermarket, Riyadh. Anwar Plaza, Riyadh. Narjis Plaza, Riyadh. Rama Plaza, Riyadh. Al-Ahsa Square, Riyadh. Al-Faris International School, Riyadh. Panda, Khamis Mushayt. Hyper Panda, Jeddah, al-Marwah. Panda, Jeddah, al-Rawda. Al-Andalus Center, Jeddah. Blue Tower, Dammam. The Pearl Warehouses, Riyadh. Panda, Jeddah, Mada'in Fahd. Lulu Central Warehouses, Riyadh. Al-Waha Mall, al-Kharj. Riyadh Avenue, Riyadh. Al-Henaki Business Center, Jeddah.
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