IPO of Bonyan REIT to start on April 15

Saudi Fransi Capital said the initial public offering (IPO) of its Sharia-compliant Bonyan REIT Fund on Saudi stock market will be launched between April 15 and May 3.

The fund will be the company's second REIT, after Taleem REIT. It has a capital base of SAR 1.629 billion, and will be one of the largest REIT entries to Tadawul, by offering SAR 651.5 million worth of shares -- i.e. 40 percent of capital.

Abdulrahman Saad Al-Rashid and Sons will retain ownership of 60 percent of capital.

The fund's asset base includes ten properties -- four shopping malls, three hotels, two residential compounds and one apartment building at City Walk Dubai.

The fund manager said that around 70 percent of the fund's assets are located in Saudi Arabia’s cities of Abha, Madinah and Jazan.

Bonyan REIT Fund’s projected net yield is 7.8 percent annually over a four-year period starting at 7.3 percent in 2018 and growing to 8.2 percent by 2021.

Fund units will be offered at SAR 10 per unit, with a minimum subscription of SAR 1000.

Units will be offered through five receiving banks, namely Banque Saudi Fransi, Al Rajhi Bank, National Commercial Bank (NCB), Riyad Bank, and Samba, in addition to the fund manager.

The Capital Market Authority (CMA) has approved on March 21 Saudi Fransi Capital’s request to offer, register and list units of Bonyan REIT on Tadawul, Argaam previously reported.