Al Mal Capital REIT Raises $49.01 Million Through Its Rights Issue

Al Mal Capital REIT (AMCREIT), the first REIT listed on DFM and managed by Al Mal Capital, a subsidiary of Dubai Investments, on Wednesday said that it has successfully completed rights issue recently and raised $49.01 million.

This has significantly bolstered the fund’s financial position, with total equity standing over $147.03 million. The rights issue follows approval being granted by the UAE’ Securities and Commodities Authority (SCA).

The proceeds raised will fund the acquisitions of additional income generating educational and healthcare assets to strengthen AMCREIT’s portfolio and help create sustainable value for unitholders, the company said in a disclosure with Dubai Financial Market (DFM), where it shares are traded, this morning.

This latest capital raise builds upon the momentum gained from the previous transaction in December 2020 when the company raised $95.30 million, despite the challenging economic climate at the time.

Looking ahead, the REIT plans to acquire an educational asset at an estimated value of $108.91 million – bringing the total portfolio value close to $272 million – and AMCREIT is poised to further enhance its asset base.

With the completion of the rights issue, Al Mal Capital REIT will continue to review investment opportunities, with plans to invest in an educational asset imminently and a healthcare facility later in the year.

AMCREIT remains committed to its investment strategy whereby it will limit investments to education and healthcare assets in the near-term, with the potential for further investment in select industrial assets in the medium/long-term.  The investment strategy also ensures that rent is visible and sustainable for the next 15 to 20 years.

Crucial Step

Al Mal Capital’s CEO and Vice Chairman Naser Al Nabulsi said that the rights issue was an important step in their journey, particularly in the midst of the ongoing global uncertainties. This achievement underscores the confidence investors have in Al Mal Capital REIT’s investment strategy and growth prospects.

“We pride ourselves on performance, and delivering value and returns for our shareholders always remains our top priority – as illustrated by our strong 7% return on the FY-2023 dividend. Using the increased capital now available to us as a result of this rights issue, AMCREIT will continue with its plans to diversify our portfolio through the acquisition of high-quality education and healthcare assets,” he added.