Dubai: The DFM-listed Al Mal Capital REIT is going ahead with a rights issue, opening March 4. Once the funds are in place, these will help the real estate investment trust with a chance to pick up additionl income-generating assets, in the healthcare and educational sectors.
The entity has an existing portfolio valued at Dh580 million, primarily invested in educational assets in the UAE. The fund’s investment strategy is focused on ‘strong-performing’ sectors such as healthcare, education, and industrials.
“This is based on secure long-term lease agreements with strong credit profile operators, offering UAE and GCC investors access to an asset class with strong value creation fundamentals – generating a target return of 7 per cent,” said a statement.
Pricing the rights issue
“This significant rights issue is an important step in our journey to generate consistent and sustainable value for investors, solidifying our position as a leading real estate asset manager and investor in the Gulf,” said Naser Al Nabulsi, CEO and Vice-Chairman of Al Mal Capital. (The fund is managed by Al Mal Capital, itself a subsidiary of Dubai Investments.)
We recognise that there are significant untapped opportunities in the commercial real estate sector, and we remain focused on identifying and acquiring those assets that are strategically aligned with our vision.
“We recognise that there are significant untapped opportunities in the commercial real estate sector, and we remain focused on identifying and acquiring those assets that are strategically aligned with our vision.”
The issue will deliver a maximum of 400 million new units to existing unitholders at Dh1.1 per share – thus increasing the share capital by about 114 per cent to Dh750 million. In addition to raising Dh40 million via issue premium, thus totaling aggregate unitholders’ equity of Dh790 million following the capital increase. “The capital raised by the rights issue will further enhance AMCREIT’s offering, by acquiring strategic and high potential assets in specified sectors, diversifying the REIT’s portfolio, and enhancing overall stability, generating further yield on behalf of investors,” the fund operator said.