Alkhabeer REIT signs SAR 420 million facility agreement with Al-Rajhi Bank to finance REIT growth
Jeddah, 17 February, 2019: Alkhabeer Capital, a prominent asset management company specializing in alternative investments, today announced that Alkhabeer REIT has signed a facility agreement valued at SAR 420 million with Al-Rajhi Bank.
The Shari’ah-compliant facility agreement will have a tenor of five years, providing financing of SAR 420 million, out of which, SAR 340 million will be used by Alkhabeer REIT to finance part of the targeted assets, and SAR 80 million will be used for future acquisitions of income-generating assets. The SAR 1-billion Alkhabeer REIT, which successfully closed its IPO in November of last year, was oversubscribed at 104% and raised SAR 247 million from 25,124 retail and institutional investors. It is currently targeting net annual returns of 9% which are among the highest rates in the market.
Commenting on the agreement, Mr. Ahmed Saud Ghouth, CEO of Alkhabeer Capital, said: “Having a strong credit record would support Alkhabeer REIT’s future growth potential. Thus, since its inception, we have been keen on building the Fund’s credit record with the Kingdom’s banks and financial institutions.” He added: “This agreement is the result of Alkhabeer Capital’s unique relationship with Al-Rajhi Bank, and we look forward to further strengthening this partnership.”
Alkhabeer Capital, headquartered in Jeddah in the Kingdom of Saudi Arabia, specializes in alternative investments and investment services. It is authorized by the Capital Market Authority, license number 07074-37.