Al Mal Capital, a diversified, multi-line investment institution based in the UAE, has announced that it has successfully raised AED350 million ($95.3 million) in the initial public offering (IPO) of its newly founded real estate investment trust, Al Mal Capital REIT. 

 

The subscription for the issue closed on December 8, said the company in a statement. 

 

Al Mal Capital REIT will be the first to list on the Dubai bourse in January, subject to final approval from the SCA and DFM, stated the fund manager.

 

Al Mal Capital's REIT unit had last week won SCA licence to start its operation as a real estate investment fund. 

 

"We are proud that we have successfully raised the required amount for Al Mal Capital REIT especially during the unprecedented times we faced this year. We are confident that the REIT will continue to meet investors’ needs, as we begin to purchase and acquire income generating real estate assets," remarked Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital.

 

Al Mal Capital REIT, he stated, plans to acquire a diversified portfolio of real estate properties targeting long-term lease agreements. 

 

"The IPO proceeds along with Islamic financing from local banks will be utilized to invest in a diversified portfolio of high-performing UAE sectors, including healthcare, education and industrial

assets, with a target annual return of 7%," added Al Nabulsi.

 

The fund manager will acquire income generating real estate in high growth sectors with high occupancy and single let assets, while entering long term lease arrangements with tenants with strong credit profiles.

 

The REIT will focus on acquiring onshore and offshore assets in the UAE, in addition to targeting investments in shariah-compliant assets through Islamic financing structures, he added.