Dubai-listed Al Mal Capital REIT has announced a “significant rights” issue. The proceeds are expected to increase the organisation’s portfolio size to c. Dh 1.3 billion, and provide a chance to add new assets in the healthcare and educational sectors.
The rights issue is set to commence on Monday 4th March 2024.
The REIT is managed by Al Mal Capital PSC, a subsidiary of Dubai Investments PJSC. It has an existing portfolio valued at Dh580 million, primarily invested in ‘strong-performing’ sectors such as healthcare, education, and industrials.
“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.
“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 entity stressed it had secure long-term lease agreements with strong credit profile operators, which offer UAE and GCC investors “access to an asset class with strong value creation fundamentals” – generating a target return of 7%.
The issue will deliver a maximum of 400 million new units to existing unitholders at Dh1.1 per share – increasing the share capital by about 114 per cent to Dh750 million, the company said.
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.
The rights issue entitles all AMCREIT unitholders to subscribe to the newly issued units – with each subscribing unitholder to be issued 1 ‘right’ for every .875 units of ownership at a subscription price of Dh 1.1 per unit.