Riyadh – Mubasher: Alkhabeer REIT Fund on Sunday signed a Sharia-complaint facility agreement at a value of SAR 420 million ($111.97 million) with Saudi-listed Al Rajhi Bank.

The fund will allocate around SAR 80 million of the loan to acquiring income-generating assets over the coming period, whereas the remaining SAR 340 million will be used to finance part of those targeted assets, Alkhabeer REIT said in a statement.

“This agreement is the result of Alkhabeer Capital’s unique relationship with Al-Rajhi Bank, and we look forward to further strengthening this partnership,” Alkhabeer Capital’s CEO Ahmed Saud Ghouth stated.

Alkhabeer REIT Fund is a subsidiary of Alkhabeer Capital, which is a major asset management firm specialising in providing alternative investments solutions.

It is worth noting that the SAR 1 billion Alkhabeer REIT Fund launched its initial public offering (IPO) in November last year, with the mother company closing the IPO at a 104% oversubscription rate. Proceeds raised from the IPO amounted to SAR 247 million.