Shuaa Capital PSC's Shuaa Capital Saudi Arabia CJSC unit launched the Shuaa Real Estate Investment Trust, a closed-ended publicly traded REIT, with the approval of the Capital Market Authority of Saudi Arabia, Reuters' Zawya reported, citing a press release.
The new REIT will publicly offer 30,515,000 units priced at 10 riyals per unit, equivalent to roughly 305.2 million riyals, which accounts for 51.5% of the trust's total size of 591.5 million riyals.
The subscription period began March 25 and will end April 7, the report added.
Shuaa REIT is structured in accordance with the updated REIT regulations issued by the financial regulator. The new principles aim to reduce the risks associated with REITs and guarantee the readiness of the properties and the solidity of the contracts from regulatory and legal perspectives, as well as the diversification of tenants and revised valuation methodologies that reflect a fair market price of the underlying asset by using the prevailing average rental prices of similar assets in the market.
Shuaa REIT plans to purchase six income-generating real estate assets across specific locations in Riyadh, the newswire added.
As of March 25, US$1 was equivalent to 3.75 Saudi Arabian riyals.