Riyadh – Mubasher: Saudi Arabia-based Derayah Financial on Tuesday announced that the initial public offering (IPO) of Derayah real estate investment traded fund (Derayah REIT Fund) will start from Wednesday, 27 December until Sunday, 7 January 2018.

The IPO subscription requests will be submitted through Riyad Bank, the National Commercial Bank (NCB), Arab National Bank (ANB), and Derayah Financial, according to a statement.

Derayah REIT’s volume is expected to reach SAR 1.17 billion, distributed over 15 real estate properties.

The fund’s properties will be located in Riyadh, Jeddah, Dammam, Khobar, Jubail, and Al-Ahsa.

The sharia-compliant fund offers SAR 361.7 million assets to the public, with plans to distribute 90% of its returns on semi-annual basis.

The fund is expected to generate 7.22% net returns during the coming year.