Musharaka Capital has received approval from the Capital Market Authority (CMA) to offer, register, and list units of the “Musharaka REIT Fund” on the market as publicly traded real estate investment fund (REIT) units.
The “Musharaka REIT Fund” is a publicly traded and closed-end real estate investment fund with a total value of SAR 880 million, making it the largest publicly traded real estate fund in the Saudi market to date. The fund’s units will be available for subscription from July 25, 2017, to August 3, 2017.
The fund’s strategy focuses on investing in developed real estate assets that generate rental income. The fund manager is committed to not investing in undeveloped land (white land) and will distribute at least 90% of the fund’s net profits annually to investors, based on the latest audited financial statements. The fund’s portfolio includes a diverse range of real estate assets across the residential, industrial, and hospitality sectors.
The launch of the “Musharaka REIT Fund” follows the CMA’s approval of regulations for publicly traded real estate investment funds in October of the previous year. This makes it the sixth publicly traded REIT in the Saudi market.
A copy of the fund’s terms and conditions is available on the websites of Musharaka Capital and the Capital Market Authority.