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Alkhabeer REIT, Al-Rajhi Bank Sign Funding Deal Exceeding $112m

Alkhabeer REIT, Al-Rajhi Bank Sign Funding Deal Exceeding $112m

Monday, 18 February, 2019 - 12:00
Jeddah - Asharq Al-Awsat
Alkhabeer Capital, a prominent asset management company specializing in alternative investments, announced Sunday that Alkhabeer REIT has signed a facility agreement valued at SAR420 million (USD112 million) with Al-Rajhi Bank.

The Shariah-compliant facility agreement will have a tenor of five years. Further, SAR340 million (USD9.6 million) will be used by Alkhabeer REIT to finance part of the targeted assets, and SAR80 million will be used for future acquisitions of income-generating assets.

The SAR one-billion Alkhabeer REIT, which successfully closed its IPO in November of last year, was oversubscribed at 104 percent and raised SAR247 million from 25,124 retail and institutional investors. It is currently targeting net annual returns of 9 percent.

Commenting on the agreement, 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.”

Alkhabeer Capital, headquartered in Jeddah in the Kingdom of Saudi Arabia, specializes in alternative investments and investment services.

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