Alkhabeer Capital, the asset manager specialising in shariah-compliant investments and financial services, said its Alkhabeer REIT, a publicly-offered closed-ended shari’a-compliant real estate investment traded fund, will use proceeds from the second additional offering to expand its asset portfolio through two key acquisitions in the educational and industrial sectors.
Its real estate portfolio includes assets diversified across the retail and industrial sectors, as well as in offices, residential and educational properties, located in strategic locations in Jeddah, Riyadh and Tabuk.
The Alkhabeer Capital Fund will acquire two high-quality properties - Vision Colleges and Akun Warehouses immediately after the end of the subscription period at less than their estimated value of SR313.4 million ($83 million) against the average estimated value of the two properties of SR316.3 million ($84.2 million), according to the latest evaluation reports.
These new assets are a part of Alkhabeer REIT's long-term strategy, which focuses on achieving stable cash flows for investors by investing in income-generating assets, while also providing a diversified asset base.
Vision Colleges is a 13-storeyed building with a total area of 13,785 sq m, leased by an educational company (specified in providing dentistry, nursing and medicine majors).
The 25-year binding leasing contract is valued at SR7.5 million ($2 million) annually.
Akun Warehouses is spread over a 12,889 sq m area comprising cold storage facilities with a five-year, binding leasing contract valued at SR16 million ($4.2 million) annually.
Alkhabeer Capital said the subscriptions for the second additional offering commenced last month and will run until June 17. The additional shares are priced at SR9.03, inclusive of subscription fees and VAT on the subscription fees.
It called upon citizens, residents and qualified individuals and institutions to subscribe to the additional offering through Al Rajhi Bank, Al Jazira Capital and Saudi National Bank, in addition to the subscription system on the website of Alkhabeer Capital, the Fund Manager, for clients of other banks.
The Saudi-based group said its second additional offering of Alkhabeer REIT will contribute to realising its investment objectives, which is focused on achieving periodic returns through investing in a diversified portfolio of income-generating assets.
The second additional offering of Alkhabeer REIT follows last year’s successful conclusion of the Fund’s first additional offering, which recorded 104% oversubscription and saw its assets under management increase by 70% to more than SR1.7 billion ($452 million).