backRIYADH, November 10, 2016 — King & Spalding (in association with the Law Offices of Mohammed Al-Ammar) acted as fund counsel to Riyad Capital on the establishment of Riyad REIT, the first real estate investment traded fund approved by the Saudi Arabian Capital Market Authority (CMA) to list its units on the Saudi Arabian Stock Exchange (Tadawul) under a new REIT regime that was recently adopted by the CMA. Riyad REIT is expected to be listed on the Saudi Arabian Stock Exchange by mid-November.
Riyad REIT is an innovative, Shari’ah-compliant real estate fund, regulated by the CMA, that will invest in income-producing properties in Saudi Arabia. With SAR 500 million (US$133 million) of equity capital, Riyad REIT will focus on investments in income-generating real estate assets in major commercial areas occupied by high-quality tenants with long-term leases. The objective of the fund is to provide its investors superior returns with annually distributed current income, in addition to a potential for capital appreciation.
Riyad Capital is one the most active asset managers in Saudi Arabia, and is the investment banking arm of Riyad Bank, one of the largest banks in the Middle East.
King & Spalding previously advised Riyad Capital on the successful launch and closing in 2015 of the Riyad Real Estate Income Fund, a Shari’ah-compliant income-producing real estate fund, which raised approximately US$130 million.
The King & Spalding team on the matter was led by partner James Stull and included partners Nabil Issa and Michael Rainey and associate Sayf Shuqair.
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