MEFIC REIT said its asset base would comprise eight real estate assets worth SAR 1.2 billion, located in Saudi Arabia and the United Arab Emirates.
The assets include offices, residential units, warehouses, hotels, and retail space.
MEFIC REIT, which has a fund size of SAR 1.23 billion, intends to provide a minimum threshold return of 5 percent. It also targets a return of 7.5 percent this year and expects it to reach 7.9 percent in 2021.
In case the minimum return declines below 5 percent, MEFIC Capital, the fund manager, is committed to pay at its own expense a maximum of 2 percent to subscribers, so as to boost the return to 5 percent for a period of eight years.
MEFIC REIT will offer 87.95 million units at SAR 10 per unit, accounting for 71.5 percent of the fund’s total units, to raise SAR 879.50 million.
The REIT’s initial public offering (IPO) started on April 4 on the Saudi Stock Exchange (Tadawul). The offering will run for 20 working days until May 1.
The fund's assets will be assessed semiannually, by accredited assessors from the Saudi Authority for Accredited Valuers (Taqeem).
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MEFIC REIT’s Properties |
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Property |
City |
Sector |
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Shopping mall |
Riyadh |
Commercial |
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Commercial & admin. tower |
Jeddah |
Office/Retail |
|
Plaza 1 |
Riyadh |
Residential compound/Commercial |
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Plaza 2 |
Riyadh |
Residential/Commercial |
|
Hospitality building |
Riyadh |
Commercial |
|
Drnef Ajyad |
Makkah |
Hotel |
|
Drnef Hotel |
Makkah |
Hotel |
|
The Pad |
Dubai |
Residential |
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