Riyad REIT Fund’s capital hike subscription period has started, today Sunday April 1 and will continue until Thursday April 12.
Riyad Capital, the fund manager, plans to increase Riyad REIT’s capital to SAR 1.633 billion from SAR 500 million.
The fund will sell 121.7 million units at a target price of SAR 9.31 per unit -- 67.99 million units for in-kind subscriptions, and 53.71 million units for cash subscription.
All investors, whether current unit holders or other investors, can participate in the offering.
The subscription will be available through Riyad Bank, National Commercial Bank (NCB), Al Rajhi Bank, Banque Saudi Fransi (BSF) and Riyad Capital, with a minimum subscription of 50 units, totaling SAR 465.50.
The fund currently owns 11 assets in various sectors, including hospitality, education, offices, residential units and retail across Riyadh, Jeddah, Dammam, and Khobar.
Riyad REIT is likely to pay a semi-annual dividend at 90 percent of profit, with a targeted net yield to investors of 6.3 percent in 2018, and up to 8 percent in 2020.
One new unit will be allotted for every unit held under for cash subscribers. The remaining units, if any, will be allotted to unit holders and the public at more than one unit for every unit held.
The units will be equally allotted to all subscribers to reach the minimum of 50 units.
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REIT Details |
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Fund name |
Riyad REIT fund |
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Subscription period |
April 1 - April 12, 2018 |
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Subscription fees |
NA |
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Units for cash subscriptions |
53.71 mln |
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Target price/unit |
SAR 9.31 |
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Current capital |
SAR 500 mln |
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Target capital |
SAR 1.633 bln |
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Units for in-kind subscriptions |
SAR 633 mln |
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Minimum Subscription |
50 units (SAR 465.5) |
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Receiving Entities |
Riyad Capital, Riyad Bank, Al Rajhi, NCB and Banque Saudi Fransi |
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