Al-Rajhi REIT shares to go on sale next week

Updated 26 December 2017
0

Al-Rajhi REIT shares to go on sale next week

LONDON: The initial public offering period of Al-Rajhi REIT Fund will run from Jan. 1 to Jan. 14, Al-Rajhi Capital said.
The fund will have a size of SR1.62 billion ($282 million), the fund manager revealed.
Some 42.67 million units will be offered to investors at SR 10 each.
“The Sharia-compliant fund aims to acquire or invest in income-generating commercial, office, and educational assets, as well as warehouses, which are mainly located in the Kingdom, except for Makkah and Madinah,” the fund said in a statement.
The preliminary portfolio comprises 13 assets that generate income at the end of January and July of every year.
The fund’s assets are spread across various sectors in the Kingdom, namely: Retail (54 percent), warehouses (12 percent), offices (26 percent) and education (8 percent).
Eligible investors are Saudis, GCC nationals, foreigners residing in the Kingdom, institutions, companies, and investment funds operating in the Kingdom, along with Qualified Foreign Investors.
About six Saudi REITs have listed on the Tadawul in recent months following legislation passed at the end of 2016, clarifying the rules governing the listing of these property vehicles that have long been around in Europe and the US but are relatively new in the Gulf. Two have been launched in Dubai since 2014.


BP axes purchase of Australian petrol pump network

Updated 21 June 2018
0

BP axes purchase of Australian petrol pump network

LONDON: British energy giant BP has axed its planned $1.3-billion purchase of a network of Australian petrol stations, it said Thursday.
“BP Australia will not continue with the proposed acquisition of Woolworths’ retail fuel and convenience business,” it said in a statement.
“Despite its best efforts, BP has determined the transaction cannot be structured to meet its strategic objectives.”
London-listed BP had announced plans in late 2016 to buy the network from supermarket chain Woolworths.
BP had sought to rebrand and operate Woolworths’ existing 531 fuel and convenience stores, plus 12 sites under construction.
However, the Australian Competition and Consumer Commission announced one year later that it was opposed to the deal, citing fears it would lead to higher motor fuel prices.
BP already supplies fuel to approximately 1,400 of its own branded service stations throughout Australia, setting fuel prices at roughly 350 of them.
“The decision does not deter BP Australia from its strategy to transform the retail convenience sector in Australia,” the group added Thursday.
“BP has a proven track record in delivering leading fuel and convenience offers to millions of customers around the world.”