- Al Mal Capital REIT plans to raise a maximum of AED 440 million to further accelerate growth and diversify our portfolio of real estate assets.
- The proceeds from the capital increase, in addition to bank funding, are expected to increase the portfolio size to c. AED 1.3 billion.
Al Mal Capital REIT (“AMCREIT”), the first REIT listed on DFM and managed by Al Mal Capital PSC, a subsidiary of Dubai Investments PJSC, is pleased to announce a significant rights issue to commence on Monday 4th March 2024. The rights issue follows approval granted by the UAE’ Securities and Commodities Authority (SCA) and proceeds raised will fund the acquisitions of additional income generating educational and healthcare assets to strengthen AMCREIT’s portfolio and help create sustainable value for unitholders.
AMCREIT has an existing portfolio size of c. AED 580 million, invested in a diversified portfolio of income-generating educational assets in the UAE. The fund has an investment strategy focused on strong-performing sectors such as healthcare, education, and industrials. This is based on secure long-term lease agreements with strong credit profile operators, offering UAE and GCC investors access to an asset class with strong value creation fundamentals – generating a target return of 7%.
The issuance will deliver a maximum of four-hundred million new units to existing unitholders at a price of AED 1.1 per share – increasing the share capital by approximately 114% to c. AED 750 million, in addition to raising AED 40 million via issue premium, totalling aggregate unitholders’ equity of AED 790 million following the capital increase. The capital raised by the rights issue will further enhance AMCREIT’s offering, by acquiring strategic and high potential assets in specified sectors, diversifying the REIT’s portfolio, and enhancing overall stability, generating further yield on behalf of investors.
The rights issue entitles all AMCREIT unitholders to subscribe to the newly issued units – with each subscribing unitholder to be issued 1 ‘right’ for every .875 units of ownership at a subscription price of 1.1 AED per unit. Unitholders’ will also be entitled to sell these rights to other interested investors on the Dubai Financial Market during the trading of rights period which is scheduled to begin Monday 26th February 2024.
Naser Al Nabulsi, CEO and Vice Chairman of Al Mal Capital, commented: “This significant rights issue is an important step in our journey to generate consistent and sustainable value for our investors, solidifying our position as a leading real estate asset manager and investor in the Gulf. We recognise that there are significant untapped opportunities in the commercial real estate sector, and we remain focused on identifying and acquiring those assets that are strategically aligned with our vision. We pride ourselves on our performance, consistently delivering robust growth and yield. This transaction heralds the next stage of our growth journey as we look to continue delivering value for investors in the Gulf.”
Detailed information about the rights issue, including the timeline and subscription process, were communicated through official channels, including the AMCREIT’s website and regulatory filings via DFM.
• Rights eligibility date: Friday 23rd February 2024
• Trading of rights period: Monday 26th February 2024 until Friday 15th March 2024
• Subscription period: Monday 4th March 2024, until Friday 22nd March 2024
• Allocation Date: Friday 29th March 2024