Al Mal Capital REIT announces the completion of its significant rights issue and the forthcoming acquisition of further assets to diversify its portfolio
April 24,2024

- Al Mal Capital REIT raised AED 180 million through this rights issue to further accelerate growth and diversify our portfolio of real estate assets.
- The proceeds from the capital increase, in addition to bank funding, is expected to increase the portfolio size to c. AED 1.0 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 the successful completion of its recent rights issue, generating AED 180 million in fund raise. This exercise has significantly bolstered the fund's financial position, with total equity standing over AED 540 million. The rights issue follows approval being granted by the UAE’ Securities and Commodities Authority (SCA). The 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.

This recent capital raise builds upon the momentum gained from the previous transaction in December 2020 which raised AED 350 million, despite the challenging economic climate at the time. Looking ahead, the REIT plans to acquire an educational asset at an estimated value of AED 400 million – bringing the total portfolio value close to AED 1 billion – AMCREIT is poised to further enhance its asset base.

Now that the rights issue is complete, Al Mal Capital REIT will continue to review investment opportunities, with plans to invest in an educational asset imminently and a healthcare facility later in the year. AMCREIT remains committed to its investment strategy whereby it will limit investments to education and healthcare assets in the near-term, with the potential for further investment in select industrial assets in the medium/long-term. The investment strategy also ensures that rent is visible and sustainable for the next 15 to 20 years.

Naser Al Nabulsi, CEO and Vice Chairman of Al Mal Capital, commented:

“This rights issue was an important step in our journey that we are pleased to have completed successfully, particularly in the midst of the ongoing global uncertainties. This achievement underscores the confidence investors have in Al Mal Capital REIT’s investment strategy and growth prospects. We pride ourselves on performance, and delivering value and returns for our shareholders always remains our top priority – as illustrated by our strong 7% return on the FY23 dividend. Using the increased capital now available to us as a result of this rights issue, AMCREIT will continue with its plans to diversify our portfolio through the acquisition of high-quality education and healthcare assets.”