Alkhabeer REIT inks SR420m deal with Al-Rajhi

Ahmed Saud Ghouth, CEO of Alkhabeer Capital, right, said that having a strong credit record would support Alkhabeer REIT’s future growth potential.
Updated 19 February 2019
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Alkhabeer REIT inks SR420m deal with Al-Rajhi

Alkhabeer Capital, an asset management company specializing in alternative investments, announced on Sunday that Alkhabeer REIT has signed a facility agreement valued at SR420 million ($112 million) with Al-Rajhi Bank.

The Shariah-compliant facility agreement will have a tenor of five years, providing financing of SR420 million, out of which SR340 million will be used by Alkhabeer REIT to finance part of the targeted assets and SR80 million will be used for future acquisitions of income-generating assets. The SR1 billion Alkhabeer REIT, which successfully closed its IPO in November of last year, was oversubscribed at 104 percent and raised SR247 million from 25,124 retail and institutional investors. It is currently targeting net annual returns of 9 percent, which are among the highest rates in the market. 

Ahmed Saud Ghouth, CEO of Alkhabeer Capital, said: “Having a strong credit record would support Alkhabeer REIT’s future growth potential. 

“Thus, since its inception, we have been keen on building the fund’s credit record with the Kingdom’s banks and financial institutions.” 

He added: “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, headquartered in Jeddah, specializes in alternative investments and investment services. It is authorized by the Capital Markets Authority, license number 07074-37.

Alkhabeer’s asset management services focus on providing investment opportunities in domestic, regional and international capital markets through a range of real estate and private equity funds. The company’s real estate investment team structures and develops innovative real estate investment products. Alkhabeer’s private equity services develop products to benefit from attractive opportunities in a number of sectors including education, health care and others.

Alkhabeer’s asset management services provide its clients with investment opportunities in capital markets, while Alkhabeer’s investment banking provides investment services, including merger and acquisitions. Alkhabeer also provides advisory services on structuring Waqf entities and managing Waqf wealth through its Waqf program.

Alkhabeer REIT is a closed-ended Shariah-compliant real estate investment traded fund, created in accordance with applicable Saudi laws and regulations and operates under Capital Markets Authority regulations and directives. It is listed on the Saudi stock exchange (Tadawul) with total assets of SR1,004,423,860 and is 99 years old.


360-degree mentoring to boost Saudi social enterprise sector

Updated 23 May 2019
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360-degree mentoring to boost Saudi social enterprise sector

The King Khalid Foundation (KKF) and Mowgli Mentoring have collaborated to strengthen the growing social enterprise sector in the Kingdom through the provision of 360-degree mentoring, which will support the personal and professional development of social entrepreneurs. The EMCC-accredited mentoring organization is working to built the capacity of Saudi mentors by instilling best mentoring practices and sharing experiences from its 10-year work around the world.

Globally, the concept of social entrepreneurship is increasingly gaining momentum and positive attention as it combines commerce with social good, allowing entrepreneurs to go beyond profit to positively impact communities and societies. Supporting these entrepreneurs, therefore, is in line with the KKF’s vision, which is to have a Saudi society with equal opportunities.

The KKF’s collaboration with Mowgli resulted in the creation of the Athar (Impact) Mentoring Program.

This program aims to build and increase the capacity of Saudi mentors, and equip them with the necessary tools to be able to provide mentorship, support and guidance to social entrepreneurs in the Kingdom. Matching mentors with social entrepreneurs and managing their mentorship relationships is a key benefit of the program.

To commence the mentoring program, Mowgli recently delivered a four-day workshop in the KKF premises in Riyadh. Fourteen professionals and business leaders received training to be 360-degree mentors before being matched with 14 social entrepreneurs. Both groups were provided with the guidelines to build solid foundations for their 1-2-1 mentoring relationships. In addition, the matched pairs will be supported over a duration of six months, during which structured on-going support will be provided to ensure that trust-based and impactful mentoring relationships are developed.

Mowgli Mentoring’s CEO Kathleen Bury said: “We see this program supporting the three themes on which the Kingdom’s Vision 2030 was built upon: Developing a vibrant society, a thriving economy and an ambitious nation. By supporting social entrepreneurs, we’re working toward achieving the Kingdom’s economic aspirations of increasing SME GDP contribution by 20–30 percent by 2030. We are, therefore, excited to be back in Saudi Arabia and are honored to be working with the King Khalid Foundation in delivering this program, and building Saudi Arabia’s mentoring capacity to sustainably support change-makers and their surrounding ecosystems for years to come.”

The key to developing entrepreneurship and fostering economic development lies in having a well-balanced ecosystem with equal investment in four key pillars: Environment (schooling, parenting), finance (working capital, debt and equity financing), infrastructure (incubators, accelerators, utilities and sound legal frameworks) and human capital development (mentoring, skills and knowledge development). Mowgli supports the latter and has successfully delivered more than 110 mentoring programs across the Middle East, North Africa and sub-Saharan Africa.