SHUAA REIT’s subscription period started on March 25 and will continue till the end of April 7, it said in a statement.
The fund is offering 30.5 million units to the public at a price of SAR 10 per unit, equivalent to around SAR 305 million, which accounts for 51.5 percent of the REIT’s total size of SAR 591.5 million.
The fund intends to acquire six income-generating real estate assets in four key sectors such as retail, restaurants, offices, residential and warehouses, located in vital areas of Riyadh.
SHUAA REIT’s key features include that the manager is independent from all assets and property owners, as there are five owners for the six properties.
Also, the fund has aligned the interest between the investors and the REIT Manager by having the management fees structured in a way whereby the bulk of the fees are based on a percentage of the rental pool generated from the underlying assets.
The fund offers considerably high returns for high quality assets in comparison with the competitive set of assets of the same category located in major cities around the Kingdom, whereby the targeted return is approximately 7 percent per annum.
SHUAA REIT was structured according to the Capital Market Authority’s (CMA) updated regulations, which aim to lower risk. They include a 12-month lock-up period for majority unitholders that begins from the start of unit trading in the Saudi stock market, which ultimately contributes to a more stable market price for the unit.
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Shuaa REIT Assets |
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|
Property |
Ownership type |
Land area (SQM) |
Location |
Acquisition Cost (SAR mln) |
Net rent revenue (SAR mln) |
Net return (%) |
Rent period (year) |
|
Elite Mall |
Free ownership |
9,600 |
Riyadh- Al Sulaimania |
201.5 |
16 |
7.94% |
5 yrs |
|
Al Nada Trading Center |
Free ownership |
4,685 |
Riyadh- Al Nada |
70 |
6.05 |
8.64% |
5 yrs |
|
Al Khoraif warehouses |
Free ownership |
85,000 |
Riyadh- Taiba |
130 |
11.255 |
8.65% |
5 yrs |
|
Euro residential building |
Free ownership |
900 |
Riyadh- Al Sulaimania |
19.2 |
1.65 |
8.6% |
5 yrs |
|
Al Mutlaq Rooms |
Free ownership |
8,144 |
Riyadh- King Abdulaziz Road |
102 |
8 |
7.84% |
15 yrs |
|
Al Mutlaq Furniture (Olaya) |
Free ownership |
4,410 |
Riyadh- Al Wurood |
50 |
4.075 |
8.15% |
15 yrs |
|
Total/Average |
112,739 |
572.7 |
47.03 |
8.21% |
7.7 yrs |
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