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.