Al Mal Capital REIT gets SCA approval for AED500 mn IPO

Public offering to remain open from Nov 8 to 19

BBN Report

DUBAI/October 26-2020: Al Mal Capital has received the Securities and Commodities Authority of the UAE (SCA) approval to float its newly founded entity, Al Mal Capital REIT, a closed-ended real estate investment trust.

Al Mal Capital REIT intends to list its units on the Dubai Financial Market (DFM’) in January 2021. Al Mal Capital REIT has a target offer size of AED500 million.

The proceeds of the offering will be utilised to invest in a diversified portfolio of income generating real estate assets, backed by secure long-term lease agreements.

Investors can expect 7 pc annual return

It will provide the UAE and GCC investors access to an asset class with strong fundamentals, through a strategy focused on investing in high-performing UAE sectors, including healthcare, education and industrial assets, with a target annual return of 7 per cent.

The Fund’s IPO subscription period is from November 8, 2020 to November 19, 2020, with a subscription price of AED1 per unit and a subscription fee of AED0.02 per unit and subscription will take place via First Abu Dhabi Bank (FAB) and DFM eIPO platform.

Khalid Bin Kalban, (seen in the picture), chairman of Al Mal Capital, noted that in the current environment, investors are looking for secure long-term attractive returns.

He said Al Mal Capital is confident that the REIT and DFM listing will meet investors’ needs, providing a liquid vehicle to access a sector with strong fundamentals.

Commenting on the IPO, Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital, said Al Mal Capital, is committed to promoting local and regional markets and creating investment products to enhance the international visibility of the regional market.

First of its kind IPO in UAE

SCA’s approval for Al Mal Capital REIT IPO is a breakthrough and the first of its kind in the UAE financial sector

Sanjay Vig, Managing Director at Al Mal Capital said, “Al Mal Capital REIT aims to provide investors with secure returns distributing at least 80 per cent of the fund’s net income, targeting Sharia compliant assets.”

He said the aim is to acquire strategic single-let, anchor assets preferably in the healthcare and education sectors that provide stable income, low volatility and long-term capital appreciation.

Al Mal Capital REIT is managed by Al Mal Capital, which was founded in 2005.It is a leading investment advisory and asset management firm regulated by SCA and UAE Central Bank, and a subsidiary of Dubai Investments.


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