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Al Mal Capital REIT raises AED 350m from IPO on DFM

Al Mal Capital REIT raises AED 350m from IPO on DFM
The REIT plans to acquire onshore and offshore assets in the UAE
Dubai Investments
DIC
0.00% 2.29 0.00

Dubai - Mubasher: Al Mal Capital, a subsidiary of Dubai Investments, has raised AED 350 million in an initial public offering (IPO) launched for its newly founded entity Al Mal Capital REIT after closing the subscription period on 8 December 2020.

Al Mal Capital REIT will be the first to be listed on the Dubai Financial Market (DFM) in January 2021, after receiving the approval from the Securities and Commodities Authority (SCA) and the DFM, according to a press release on Monday.

On 21 December 2020, the SCA approves to grant Al Mal Capital REIT a license to operate as a real estate investment fund.

The fund seeks to enter into long-term lease agreements to acquire a diversified portfolio of real estate properties.

Hence, Al Mal Capital REIT will use both IPO proceeds and Islamic financing from local banks to invest in various high growth sectors in the UAE, including healthcare, education, and industrial assets, targetting an annual return of 7%.

Meanwhile, the REIT plans to acquire onshore and offshore assets in the UAE and invest in Shariah-compliant assets through Shariah financing structures. 

The Vice-Chairman and CEO of Al Mal Capital, Naser Al Nabulsi, commented: "We are confident that the REIT will continue to meet investors’ needs, as we begin to purchase and acquire income-generating real estate assets."

It is noteworthy to mention that in late October, Al Mal Capital obtained the approval of the SCA to launch the IPO for Al Mal Capital REIT on the DFM.