Al Mal property fund raises $95m in IPO

Dubai asset management firm Al Mal Capital has pulled in $95.3 million from an IPO of its real estate investment trust (Reit).

Following the IPO, the property fund will be listed on the Dubai Financial Market on January 21.

The proceeds, along with additional capital from Islamic financing from local banks will be used to invest in a diversified set of income-generating assets, according to a statement from the firm.

The fund will target what it views as high-performing sectors in the UAE such as healthcare, education and industrial assets, with a target annual return of 7%.

“We are proud that we have successfully raised the required amount for Al Mal Capital Reit, especially during the unprecedented times we faced this year,” said Naser Al Nabulsi, vice chairman and chief executive of Al Mal Capital.

“We are confident that the Reit will continue to meet investors’ needs, as we begin to purchase and acquire income-generating real estate assets,” he added.

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