JEDDAH — Alkhabeer Capital, a prominent asset management company specializing in alternative investments, on Sunday announced that Alkhabeer REIT has signed a facility agreement valued at SR420 million with Al-Rajhi Bank.

The Shariah-compliant facility agreement will have a tenor of five years, providing financing of SR420 million, out of which SR340 million will be used by Alkhabeer REIT to finance part of the targeted assets, and SR80 million will be used for future acquisitions of income-generating assets. The SR1-billion Alkhabeer REIT, which successfully closed its IPO in November of last year, was oversubscribed at 104% and raised SR247 million from 25,124 retail and institutional investors. It is currently targeting net annual returns of 9% which are among the highest rates in the market.

Commenting on the agreement, Ahmed Saud Ghouth, CEO of Alkhabeer Capital, said: “Having a strong credit record would support Alkhabeer REIT’s future growth potential. Thus, since its inception, we have been keen on building the Fund’s credit record with the Kingdom’s banks and financial institutions.” He added: “This agreement is the result of Alkhabeer Capital’s unique relationship with Al-Rajhi Bank, and we look forward to further strengthening this partnership.”

Alkhabeer Capital, headquartered in Jeddah in the Kingdom of Saudi Arabia, specializes in alternative investments and investment services. It is authorized by the Capital Market Authority. — SG