Dubai's Al Mal Capital raises Dh350m for its IPO in turbulent times. Fund plans to acquire a portfolio of properties in the healthcare, education and industrial sectors.
Dubai , Dubai
30 December 2020, 12:00 AM
31 January 2021, 12:00 AM
Al Mal Capital, an asset management subsidiary of Dubai Investments, raised Dh350 million ($95.37m) through the public float of its real estate investment trust, or Reit.
With the funds in place, Al Mal Capital REIT plans to acquire a diversified portfolio of properties with long-term lease agreements.
Al Mal Capital Reit initially sought to raise Dh500m in IPO proceeds, according to an October 26 statement. It will be the first Reit to trade on the DFM.
Emirates Reit and ENBD Reit, two other property investment vehicles in the emirate, are listed on Nasdaq Dubai.
The IPO proceeds along with Islamic financing from local banks will be utilized to invest in such a portfolio spanning healthcare, education and industrial assets. The intended annual return is 7 per cent.
The Reit will begin trading on the Dubai bourse in January, once it receives final approval from the DFM and the Securities and Commodities Authority, it said.
Naser Al Nabulsi, vice chairman and chief executive of Al Mal Capital said, “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," he added.