Al Mal Capital announced that the subscription period to its newly founded entity, Al Mal Capital REIT, that started on Sunday, 8th November 2020, is now extended until 8th December 2020 in line with the company’s decision to extend the subscription period and in accordance with the terms outlined in the fund’s prospectus.
Al Mal Capital, the REIT’s fund manager, announced last month that it received the Securities and Commodities Authority of the UAE (“SCA”) approval to float Al Mal Capital REIT, a closed-ended real estate investment trust with a target offer size of AED 500 million. Al Mal Capital REIT intends to list its units on the Dubai Financial Market (“DFM’’) in January 2021.
Eligible investors can subscribe through First Abu Dhabi Bank (FAB) or the DFM eIPO platform at a subscription price of AED 1.00 per Unit and a subscription fee of AED 0.02 per Unit.
Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital said: “The region is currently underserved with listed REITs, which is why we were excited to introduce Al Mal Capital REIT. The REIT’s IPO has been well subscribed to date, and we have been approached by new investors asking for further time to assess the opportunity and go through the required steps to complete this.”
He added: “I see this positive response as an achievement and serves as testament to the healthy appetite for such products in the region. Investors gravitate towards investments in REITs because they provide a stable income for a low investment entry cost.”
Al Mal Capital REIT is the first REIT IPO on the DFM and plans to acquire a diversified portfolio of real estate properties targeting long-term lease agreements. The proceeds will be utilized to invest in a diversified portfolio of high-performing UAE sectors, including healthcare, education and industrial assets, with a target annual return of 7%.*
The fund manager will secure an income through the acquisition of income generating real estate in high growth sectors with high occupancy and single let assets, while entering long term lease arrangements with tenants with strong credit profiles. The REIT will focus on acquiring onshore and offshore assets in UAE, in addition to targeting investments in Shariah compliant assets through Shariah financing structures.
The declared return of 7% is a target net return of 7%, on average, without any confirmation that such return will be achieved. Future data includes expectations, and the fund, the fund manager, and the receiving banks don’t give any guarantee that such expectations will be achieved. Market conditions, risks and uncertainties the fund and / or the fund manager could face may impact future expectations. Please refer to the risk factors section in the Prospectus for any clarifications.