DUBAI: Al Mal Capital announced today that it has received the Securities and Commodities Authority of the UAE (SCA) approval to float its newly founded entity, Al Mal Capital REIT, a closed-ended real estate investment trust.
Al Mal Capital REIT intends to list its units on the Dubai Financial Market (DFM’) in January 2021. Al Mal Capital REIT has a target offer size of AED 500 million. The proceeds of the offering will be utilized to invest in a diversified portfolio of income generating real estate assets, backed by secure long-term lease agreements.
It will provide UAE and GCC investors access to an asset class with strong fundamentals, through a strategy focused on investing in high-performing UAE sectors, including healthcare, education and industrial assets, with a target annual return of 7%.
The Fund’s IPO subscription period is from8th November 2020 to19th November 2020, with a subscription price of AED 1.00 per Unit and a subscription fee of AED 0.02 per Unit and subscription will take place via FAB and DFM eIPO platform.
Khalid Bin Kalban, Chairman of Al Mal Capital PSC said, “In the current environment, investors are looking for secure long-term attractive returns. Al Mal Capital is confident that the REIT and DFM listing will meet investors’ needs, providing a liquid vehicle to access a sector with strong fundamentals.”
Commenting on the IPO, Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital said: “Al Mal Capital is committed to promoting local and regional markets and creating investment products to enhance the international visibility of the regional market. SCA’s approval on Al Mal Capital REIT IPO is a breakthrough and the first of its kind in the UAE financial sector.”
Sanjay Vig, Managing Director at Al Mal Capital said, “Al Mal Capital REIT aims to provide investors with secure returns distributing at least 80% of the fund’s net income, targeting Sharia compliant assets. The aim is to acquire strategic single-let, anchor assets preferably in the healthcare and education sectors that provide stable income, low volatility and long-term capital appreciation.”
Al Mal Capital REIT is managed by Al Mal Capital, founded in 2005, a leading investment advisory and asset management firm regulated by SCA and UAE Central Bank, and a subsidiary of Dubai Investments PJSC.
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