Al Mal Capital announced on Monday that it has received approval to float its newly founded entity, Al Mal Capital REIT, a closed-ended real estate investment trust.
The company said the Securities and Commodities Authority of the UAE (SCA) has given the green light to Al Mal Capital REIT’s plans to list its units on the Dubai Financial Market (DFM) in January 2021.
Al Mal Capital REIT said it has a target offer size of AED500 million ($136 million), adding that the proceeds of the offering will be used to invest in a diversified portfolio of income generating real estate assets, backed by secure long-term lease agreements.
It will focus on investing in high-performing UAE sectors, including healthcare, education and industrial assets, with a target annual return of 7 percent.
Khalid Bin Kalban, chairman of Al Mal Capital
The fund’s IPO subscription period runs from November 8-19, with a subscription price of AED1.00 per unit and a subscription fee of AED0.02 per unit.
Khalid Bin Kalban, chairman of Al Mal Capital, said: “In the current environment, investors are looking for secure long-term attractive returns. 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.”
Naser Al Nabulsi, vice chairman and CEO of Al Mal Capital
Naser Al Nabulsi, vice chairman and CEO of Al Mal Capital, added: “Al Mal Capital is committed to promoting local and regional markets and creating investment products to enhance the international visibility of the regional market. SCA’s approval on Al Mal Capital REIT IPO is a breakthrough and the first of its kind in the UAE financial sector.”
Al Mal Capital REIT is managed by Al Mal Capital, a subsidiary of Dubai Investments.
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