Swicorp Wabel REIT’s initial public offering (IPO) will end on Sunday, April 8, 2018.
The asset base of the sharia-compliant fund includes four fully developed and income-generating shopping malls, namely the Al Makan Malls located in Riyadh, Tabuk, Hafr Al-Batin, and Dawadmi.
Swicorp said that most assets are located in cities with high demand for commercial and entertainment properties, mainly due to weak supply. The shopping malls in the fund’s portfolio are newly built, with the oldest mall constructed in 2015.
The properties are anchored by 423 major local and international retailers, with 50 percent of the contracts’ duration ranging between five and 20 years.
There is an annual rent increase clause in more than 50 percent of the existing contracts.
Although all assets are newly built, their current average occupancy rate is 96.38 percent.
The REIT fund’s IPO started on March 19, with a target size of SAR 1.18 billion.
The fund offered 35.4 million units at SAR 10 per unit, totaling SAR 354 million. This represented 30 percent of the fund size.
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