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Alkhabeer Capital Announces the Results of Coverage Ratio which Exceeded 307% in the Second Additional Offering of Alkhabeer REIT Fund Units 

23 June 2021

Alkhabeer Capital Announces the Results of Coverage Ratio which Exceeded 307% in the Second Additional Offering of Alkhabeer REIT Fund Units 

  • The coverage ratio exceeded 307%, with total number of subscribers for the second additional offering of Alkhabeer REIT Fund exceeding 83,000 subscribers, and the total value of SAR 436.75 million
  • Proceeds will be used to acquire educational and logistical assets in Jeddah, Vision Colleges for Education and Akun Warehouses

Jeddah, Saudi Arabia – 23 June 2021: Alkhabeer Capital, the asset manager specializing in Shari’a-compliant investments and financial services, announced the successful conclusion of the second additional offering subscription period of Alkhabeer REIT Fund.

The second additional offering of the Fund has attracted 83,705 individual and institutional investors, with a total subscription value of SAR 436,755,183.90 million where the coverage ratio exceeded 307% of the cash subscription value, which is estimated at SAR 138,797,504. The proceeds of the required offering will be used, within the efforts made, to expand the asset portfolio of the Fund through two acquisitions, one in the educational sector and the other in the logistical sectors, namely: Vision Colleges and Akun Warehouses, both in Jeddah.

Ahmed Ghouth, CEO of Alkhabeer Capital, said: “I am pleased to announce the success of the second additional offering of Alkhabeer REIT Fund with a coverage ratio of 307%, which reflects the trust that investors place in the Fund. The new subscriptions increased the total value of the Fund’s assets to SAR 2,062,727,909 for the total number of the Fund’s units to reach 141,008,848 units. The increase in the volume of assets by acquiring two additional real estate assets will contribute to achieving the Fund’s long-term strategy, which focuses on achieving continuous cash flows by investing in income-generating assets.”

According to the Fund’s Terms and Conditions, the units will be allocated to subscribers and the surplus will be refunded within 15 business days from the end of the offering period, no later than 08 July 2021 corresponding to 28 Dhu Al-Qadah 1442. Furthermore, the period for the acquisition process, the transfer of ownership of assets and the listing of the Fund’s units on Tadawul is within 60 business days from the end of the offering period, no later than 09 September 2021 corresponding to 02 Safar 1443.

The subscription period extended for 15 business days, from 30 May 2021 until 17 June 2021. The additional shares were priced at SAR 9.03, inclusive of subscription fees and VAT on the subscription fees. Saudi citizens, residents as well as qualified individuals and institutions were able to subscribe through the receiving entities, in addition to the subscription system on the website of Alkhabeer Capital.

Alkhabeer REIT Fund is a publicly offered, closed-ended, Shari’a-compliant real estate investment traded fund created in accordance with applicable Saudi laws and regulations and is subject to Capital Market Authority (CMA) regulations. It was listed on the Saudi Exchange on 20 March 2019 corresponding to 13 Rajab 1440. The real estate portfolio of the Fund includes assets diversified across the retail and logistical sectors, as well as in offices, residential and educational properties, located at strategic sites in Jeddah, Riyadh and Tabuk.

Alkhabeer Capital, headquartered in the Kingdom of Saudi Arabia, is an asset manager specialized in Shari’a-compliant investments and financial services. It is authorized by the Capital Market Authority (CMA), license number 07074-37.

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