Riyad Capital announces that it has successfully closed the secondary public offering to increase the capital of Riyad REIT Fund from SR 500 million to SR 1.633 billion and with a total of 18,000 subscribers.
Riyad REIT is the first fund to carry out a secondary offering by raising its capital through a new mechanism based on a right of allocation method. Riyad REIT will be the largest real estate investment traded fund in Saudi Arabia up to date.
The capital increase of SAR 1.133 billion will mainly be used for the acquisition of three new properties that will increase the number of properties in the fund from 8 to 11 properties spread across four major cities. The newly acquired properties include two properties in Riyadh, the Kempinski Hotel complex and the Saudi Electronic University building, and a mixed-use property in Jeddah that includes offices, retail, and residential apartment uses. The acquisitions enhance the geographic and sectoral diversity of the Fund by expanding further into hospitality, commercial, and other segments.