Riyad REIT fund began trading on the Saudi Stock Exchange (Tadawul) Sunday under the code 4330, making it the first REIT to be listed on the local bourse.
The daily price fluctuation limit stands at 10 percent per unit.
Riyad REIT, which was established on June 9, 2015, is an open-ended real estate investment traded fund managed by Riyad Capital. It has SAR 500 million in capital divided into 50 million units of SAR 10 each.
The Sharia-compliant fund was offered in a private placement.
The REIT will focus on investments in income-generating real estate assets. It may also invest in property development projects, provided that the fund ensures regular income at a minimum of 75 percent of total fund assets.
The fund, however, is not allowed to invest in vacant land.
Riyad REIT aims to acquire and operate a real estate portfolio in major commercial areas so as to capitalize on the demand.
The fund has a five-member board of directors, with Ali Abdul Rahman Al Gwaiz appointed as chairman.
The fund has invested SAR 420 million in five properties across Riyadh, Dammam and Jeddah. The annual rent value of these properties stand at SAR 34 million.
It also owns the Ascott Tower project, which is currently under development in Al-Khobar city.
Investment risks in the fund include no guarantees the fund would generate returns in the future. Also, subscribers may not be able to sell or dispose of the fund’s assets, Riyad Capital added.
Riyad REIT’s units could be traded at a value less than the offering price, due to unfavorable market conditions.
Though the fund is required to distribute a minimum of 90 percent of the fund’s net profits annually to its unit holders, there is no guarantee for the actual amounts that would be distributed.
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Riyad REIT Fund - Details |
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Fund name |
Riyad REIT fund |
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Investments aims |
Invests in real estate that is developed structurally and rentable with periodic income |
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Fund size |
SAR 500 mln |
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Unit price |
SAR 10 |
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Fund manager |
Riyad Capital |
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Dividend distribution |
Fund manager plans to distribute cash dividend annually to unit holders of not less than 90 percent of the net profit of real estate investment fund |
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Number of ratings |
Once in every 6 months |
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Fund trading |
Similar to trading of equity shares |
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Real Estate Owned by Riyad REIT Fund |
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Level of occupancy |
Area (m2) |
Location |
Real Estate |
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86% |
6,400 |
Riyadh- Qranada |
Al Motamayz Center |
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100% |
4,400 |
Riyadh- Izdihar |
Al Izdhar Commercial Centre |
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100% |
8,000 |
Riyadh- Olaya |
Fursan Tower |
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88% |
13,300 |
Dammam- Beach District |
Beach Breeze Tower |
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100% |
14,338 |
Jeddah |
Ascott Tahliya Tower |
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Under-construction |
25,000 |
Al Khobar- Corniche |
Ascott Tower |
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