CMA approves increase of Alkhabeer REIT’s total assets

The Capital Market Authority (CMA) approved Alkhabeer Capital Co.'s request to increase Alkhabeer REIT Fund’s total assets value by issuing additional units for acquiring real estate assets.

The CMA said in a statement that the request complies with the relevant requirements as per the Real Estate Investment Funds Regulations and Real Estate Investment Traded Funds instructions.

The fund manager will publish the terms and conditions of Alkhabeer REIT Fund prior to unitholders meeting, including the objectives and rationale of increasing the fund's total assets value by issuing additional units.

The terms and conditions will include all relevant information the unitholders need to know before making a voting decision, including information on the acquisition transaction and risk factors.

The statement noted that the voting decision without reading the terms and conditions of Alkhabeer REIT Fund carefully or fully reviewing its content may involve high risk.

If the terms and conditions of Alkhabeer REIT Fund prove difficult to understand, it is recommended to consult with an authorized financial advisor.

The CMA stressed that its approval should never be viewed as an endorsement of the feasibility of increasing the fund's total assets value by issuing additional units for the purposes of a transaction, indicating that the regulatory requirements as per the Capital Market Law and its implementing regulations have been met.

In January, Alkhabeer Capital Co. announced raising the total asset value of Alkhabeer REIT Fund by 51.6% in cash and in kind, to acquire 2 properties in Riyadh and Eastern Region, however, the fund's board of directors decided in May not to proceed with the acquisition under the current circumstances