They are financial instruments listed in the Saudi Stock Exchange (Tadawul) that allow all types of investors to obtain investment exposure to the Real Estate Market. This is achieved through collective ownership of constructed developed real estate qualified to generate periodic rental income.
  • REITs are liquid and flexible to buy and sell its units, while REIFs are more complicated in terms of subscription and liquidation;
  • REITs are highly transparent compared to REIFs;
  • A REIT is obligated to distribute 90% of its net income annually, while a REIF is not obligated to distribute any percentage of its net income.

A closed-end Real Estate Investment Traded Fund (REIT) listed in the Saudi Stock Exchange (Tadawul).

Compliant with Shariah Board principal, established in Saudi Arabia, and adheres to The Real Estate Investment Funds Regulations and Real Estate Investment Traded Funds Instruction imposed by the Capital Market Authority “CMA”.

Swicorp Wabel REIT during its placement featured:

Targeted Gross Initial Yield (2018)* 8.60%
Targeted Net Yield (2018)* 7.70%
Total Fee (of NAV)** 0.90%
Management Fee (of NAV) 0.75%
No Capital Structure Fee 0.0%
* At unit per value
**Management fee included
The Fund is Compliant with Shariah Board principal as per the Certificate no. SCP-726-06-01-08-17 obtained from the "Shari'a Review Bureau".
99 years, starting from the date of listing the Fund units’ in the Saudi Stock Exchange “Tadawul” and making it available for trading, and extendable for similar periods at the discretion of the Fund Manager and after obtaining CMA approval.
Total Fund Size is 118,000,000 units equals SAR 1,180,000,000. The Fund is offering 30% of the total Fund size to public.
The size of the IPO is 35,400,000 units which equals SAR 354,000,000.
The Fund aims to invest in real estate assets within the Kingdom of Saudi Arabia (Excluding Makkah and Medina) qualified to generate periodic rental income. The Fund will distribute at least 90% of the fund’s net profit annually to unitholders.
The Fund's initial investments are focusing on the commercial sector (retail shopping malls). However, the Fund may diversify its real estate portfolio in the future by acquiring real estate assets in other sectors within Saudi Arabia (excluding Makkah and Medina).
The current portfolio will comprise four large shopping centers across the Kingdom:
  1. Al Makan Mall - Hafr Al Batin
  2. Al Makan Mall - Riyadh
  3. Al Makan Mall - Tabuk
  4. Al Makan Mall - Dawadmi
For more information regarding Fund’s assets please click (Portfolio)
  • The assets are strategically located in prime, rapidly growing and limitedly competed areas, some of which are the only one in the region to: (i) enjoy the first mover and monopoly benefits; (ii) exploit the advantage from high demand coupled with low supply and (iii) correspond to consumers requirements to provide various goods and products that they are looking for in their area;
  • The properties are anchored by major local and international retailers and characterized by some long-term lease contract whereas most of the executed contracts contain a yearly rental escalation clause;
  • The assets are enjoying high occupancy rate with an average 96.38% of the GLA despite them being newly built and operated. Furthermore, the occupancy is expected to increase and the net yield is targeted to increase as per the feasibility study conducted by “ValueStrat”

The fund will comply with the policy of investing at least 75% of the fund's total assets value according to the last audited financial statements in developed real estates qualified to generate periodic rental income.

Furthermore, the Fund will neither invest in vacant land nor invest in Makkah and Madinah.

Yes, all the Fund’s initial assets are newly constructed. The oldest mall was completed in October 2015.
Although the properties are newly constructed, they are enjoying high occupancy rates with an average of 96.38% of the total available GLA.

Swicorp Wabel REIT targeted gross yield and net yield to investors in 2018 are 8.6% and 7.7% respectively.

As per the feasibility study conducted by “ValuStrat” the net yield is expected to reach 8.30% on par value in 2020.

At least 90% of the funds net profits will be distributed annually to unitholders at the end of Q1. The Fund manager may distribute the dividend more than once a year.
It is targeted that total annual fund fees to not exceed 0.9% of NAV, which includes the fund management fee of 0.75% annually of NAV.

Investment in the Fund includes several risks such as commercial sector concentration risk, absence of historical operational record, reliance on the Fund's principal employees, liquidity risk, trading below market value, risk of increasing the Fund's capital and risks of not achieving the disclosed returns on investment.

Furthermore, there are risks associated with Fund's underlying assets such as: fluctuations in assets market value, lack of liquidity, the effect of the competitive nature of the retail and commercial sectors in the Kingdom, the ability to attract and retain appropriate tenants and effective management for the assets, the probability of losing principal tenants and the possibility to exposure certain fixed costs versus potential revenue decrease.

For more information about the Fund's risks, please refer to Terms and Conditions.

The Fund Manager cooperate with a number of entities to establish the Fund:

  1. Custodian: Al Bilad Capital
  2. Audit Firm: Alliance Chartered Accountant
  3. Legal Advisor: Turkistani & Alabbad Law Firm
  4. Shari'a Advisor: Shariyah Review Bureau
  5. Real Estate Evaluators: Barcode company, Bussma company
  6. Feasibility Study: ValuStrat
  7. Technical Advisor: Jood Company
  8. Tax Advisor: PWC
  9. Property Manager: Akeed Leasing & Marketing
Capital Market Authority “CMA” will be undertaking the supervision of the Fund.
Yes, will be traded after closing the initial public offering.
IPO Subscription period starts on 02/07/1439 to 22/07/1439 corresponding to 19/03/2018 to 08/04/2018
The main owner (Wabel Al Arabia Investment) will bear the entire VAT amount if imposed on the purchase price of the fund’s initial assets. The subscription fee of 1% includes the VAT.