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Al Rajhi Capital closes $181m real estate fund

Riyadh, December 15, 2013

Al Rajhi Capital, one of the largest investment firms in Saudi Arabia, said it has successfully closed its second real estate income generating fund, with total equity of SR678 million ($180.7 million), surpassing the fund’s original target of SR500 million.

The five-year closed-ended fund will invest in income generating properties, such as warehouses, community retail centres and other types of properties occupied by solid tenants with long-term leases, said the Saudi firm.

The objective of the fund is to provide its investors superior returns with balanced risk, bi-annually distributed current income, in addition to a potential for capital appreciation.

The main geographic focus of the fund will be the Kingdom with an added optional flexibility to enhance return by investing in other selected GCC countries, when strategic opportunities arise, said a top official.

“We are very pleased with the successful outcome of total capital raised, particularly the fact that the Al Rajhi Real Estate Income Fund has managed to conclude its subscription offering well ahead of its originally set closing date,” remarked Gaurav Shah, the CEO of Al Rajhi Capital.

“Receiving commitments from a sizable proportion of repeat investors, coupled with attracting new investor categories is testament to the tremendous support and confidence our clients have entrusted us with. This is an opportune time to acquire stabilized, income generating real estate assets in the GCC market, with a particular focus on the Kingdom's property sector", added Shah.

Headquartered in Riyadh, Al Rajhi Capital is the independent, wholly-owned investment banking subsidiary of Al Rajhi Bank.-TradeArabia News Service




Tags: real estate fund | Al Rajhi Capital |

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