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Saudi Alkhabeer REIT inks finance deal with Al Rajhi

JEDDAH (Saudi Arabia), February 17, 2019

Alkhabeer Capital, a prominent Saudi-based asset management company specialising in alternative investments, today (February 17) announced that Alkhabeer REIT has signed a major facility agreement with country's leading bank Al Rajhi.

The shari’ah-compliant deal will have a tenor of five years, providing financing of SR420 million ($99 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, said the Jeddah-based company.

The SR1-billion Alkhabeer REIT, which successfully closed its IPO in November of last year, was oversubscribed at 104 per cent and raised SR247 million from 25,124 retail and institutional investors. It is currently targeting net annual returns of 9 per cent which are among the highest rates in the market.

On the deal, Alkhabeer Capital CEO Ahmed Saud Ghouth 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."

"This agreement is the result of Alkhabeer Capital’s unique relationship with Al Rajhi Bank, and we look forward to further strengthening this partnership," he added.-TradeArabia News Service




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