Targeted net yield to investors
  • The REIT’s initial unlevered 2018 targeted net yield to investors is 7.7%, and targeted to increase to reach 8.3% by 2020 as per the feasibility study conducted by “ValuStrat
  • The Fund’s yield is supported by a portfolio acquisition price that is at a 5% discount to the average independent valuators, in addition to support from the major sellers Wabel Alarabia Investment Co. who will bear 100% of any additional amounts on the purchase amount resulting from VAT
Brand new & High quality assets
  • All malls are newly constructed, oldest was constructed end of 2015, and as per the technical inspection, the properties are in good condition and exhibits good quality standards in terms of construction and building facilities considering local and international standards
Diverse tenancy mix
  • The properties are anchored by 423 major local and international retailers and caters to a wide, cross-section of high quality specialty retailers and national chain operators
  • The rental contracts vary in duration whereby more than 50% of the contracts value have a duration from 5-20 years with escalation clauses
Strong growth potential
  • Despite the fact that all malls are new, the assets currently enjoy high occupancy rates with an average of 96.38% of the GLA, and the potential revenue generation from filling up vacancies is high
  • Moreover, there is an additional expected year-on-year increase in rental income increases as most the rent agreements have escalations

Merits of Wabel REIT Fund?

Targeted Gross Initial Yield* (2018) 8.6%
Targeted Net Initial Yield* (2018) 7.70%
Fund Management Fee (of NAV) 0.75%
Total Fund fees** 0.9%
No Capital Structure Fee 0.00%

* At unit per value
**The total Fund fees is including management fee

Strong Commitment

Strong commitment from sellers
  • The major sellers, Wabel Al Arabia Investment Company, has demonstrated strong commitment to the REIT and has agreed to: (i) a 6-month lock-up period whereby it will not reduce its shareholding below 50% in the Fund; (ii) provide an Order Note of SAR 18 million guaranteeing any rental shortfall; and (iii) bear 100% of any additional amounts resulting from the new VAT regulations
Strong commitment from Swicorp as the Fund Manager
  • As the fund manager, Swicorp will invest in cash SAR 35.4m into the Fund (representing 3% of the REIT’s capital)