Riyadh – Mubasher: Alkhabeer Capital on Sunday announced the launch of the initial public offering (IPO) of its Sharia-compliant Alkhabeer REIT Fund on the Saudi Stock Exchange (Tadawul).

The IPO size amounts to SAR 237 million, or around 24% of the fund's total assets worth SAR 1 billion, the asset manager revealed, noting that subscription in Alkhabeer REIT Fund will continue until Thursday, 29 November 2019.

Speaking about the fund, Alkhabeer Capital CEO Ahmed Saud Ghouth said that the fund's target returns would exceed "9% per annum, distributed quarterly," indicating that such a rate was "among the highest in comparison with other real estate investment traded funds" listed on Tadawul.

"Prospective subscribers may apply through the following institutions: Aljazira Capital, National Commercial Bank, Riyad Bank, Al-Rajhi Bank, Arab National Bank and Saudi Fransi Bank," Alkhabeer Capital noted in a statement.

The Saudi asset management firm said in late October that it was planning to launch an SAR 237 million IPO for its Sharia-compliant fund.

It is worth noting that Alkhabeer REIT currently invests in seven income-generating real estate assets at prime locations across Riyadh, Jeddah, and Tabuk.