Riyadh-based fund manager Jadwa Investment has started a secondary offering for its real estate investment trust (Reit) fund.
The closed-ended, shariah-compliant fund has SAR2.19 billion (US$584 million) of assets and invests in top-tier real estate located in Saudi cities.
According to Jadwa, the offering will raise $98.7 million in additional equity, increasing the fund’s value by 16.9%.
The proceeds from the capital raise will be used to fund the purchase of Boulevard Riyadh, a luxury office and retail complex.
The property will cost $85.33 million, equivalent to 13.4% of the fund’s assets, post-equity raise.
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