MEFIC REIT Fund will start trading on Saudi Stock Exchange (Tadawul) today, Nov. 13 under the code 4346.
The daily price fluctuation limit stands at 10 percent per unit, Tadawul said in a statement.
All subscribed units were allocated to investors at 100 percent oversubscription ratio, as a total of 31,160 subscribers invested SAR 404.57 million during the offering period.
MEFIC REIT Fund is the ninth to be listed on Tadawul in 2018, raising the total number of REITs to 16.
REITs allow investors to access the local real estate market through purchasing existing, developed property.
MEFIC REIT Profile
MEFIC Real Estate Investment Traded REIT Fund, sharia-compliant REIT
Investing in income-generating real estate properties in Saudi Arabia and the GCC
SAR 1.23 bln
99 yrs from listing, renewable upon the fund manager’s desire after obtaining the CMA’s approval
The fund consists of an investment portfolio that includes 8 properties in Riyadh, Jeddah Makkah and Dubai. The portfolio includes residential, commercial, office buildings and hotels.
2% of subscription amount paid in advance for one time
0.35% of net fund’s value
Semi-annual cash dividend of not less than 90% of fund annual net profit. First payment shall be within 90 days from the fiscal year end while second payment is set to be within Q3.
*the fund manager has waived management fees for one year.
The REIT’s asset base comprises eight real properties worth a combined SAR 1.2 billion, dispersed around Saudi Arabia and the UAE, including offices, residential units, warehouses, hotels and retail space.
The Fund’s Properties
Purchase value (SAR mln)
Commercial & administrative tower
Drnef Ajyad Hotel
Drnef Hotel- Makkah
The PAD *
* The fund has acquired 32 apartments of The Pad at a cost of SAR 66.25 mln including land Department fees.
The fund purchased 32 residential units in the Pad, Dubai’s Business Bay, at a total cost of SAR 66.25 million, including the land fees.