Al Mal Capital has announced today that it has successfully raised AED 350 million in the initial public offering (IPO) of units in Al Mal Capital REIT, its newly founded entity, having closed the subscription period on 8th December 2020. Al Mal Capital, the fund Manager, received SCA’s approval to float Al Mal Capital REIT and list its units on the Dubai Financial Market (“DFM’’).
Al Mal Capital REIT received SCA’s license to operate as a real estate investment fund on 21st December 2020. Al Mal Capital REIT will be the first to list on the DFM in January 2021, subject to final approval from the SCA & DFM.
Al Mal Capital REIT plans to acquire a diversified portfolio of real estate properties targeting long-term lease agreements. The IPO proceeds along with Islamic financing from local banks 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%.*
Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital said: “We are proud that we have successfully raised the required amount for Al Mal Capital REIT especially during the unprecedented times we faced this year. We are confident that the REIT will continue to meet investors’ needs, as we begin to purchase and acquire income generating real estate assets.”
The fund manager will acquire 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 the UAE, in addition to targeting investments in Shariah compliant assets through Shariah financing structures.
Note: Al Mal Capital REIT isn’t established as a shariah compliant REIT
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.