Saudi-based fund manager Shuaa Capital has unveiled its first real estate investment trust (Shuaa Reit) after gaining regulatory approval for the closed-ended and publicly traded fund from the Capital Market Authority of Saudi Arabia.
The subscription period opened on March 25, 2019 and is set to run until April 7. The fund is offering 30.5 million units at a price of $2.6 per unit, accounting for just over half (51%) of the fund’s total assets ($158 million).
Shuaa says that the fund will look to acquire as many as six income-generating real estate assets in Riyadh covering four sectors.
Shuaa Capital’s chief executive Omar Al Jaroudi heralded the fund launch as a “significant milestone” for the firm.
“Reits are globally acknowledged as long-term real estate alternative investment instruments, geared to provide a steady stream of income through periodic distributions whilst providing liquidity through tradable units in the market, full transparency on transactions," he said.
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