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Al Mal Capital REIT announces opening of follow-on public offering
FPO aims to raise up to Dh242 million by issuing up to 220 million new units
- PUBLISHED: Mon 7 Jul 2025, 11:33 AM UPDATED: Mon 7 Jul 2025, 5:52 PM
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Al Mal Capital REIT, the first real estate investment trust (REIT) listed on the Dubai Financial Market (DFM), on Monday announced the official opening of the subscription period for its Follow-on Public Offering (FPO).
The FPO, approved by the Securities and Commodities Authority (SCA), aims to raise up to Dh242 million by issuing up to 220 million new units priced at Dh1.125 per unit, including Dh0.025 subscription fee. The FPO is open to retail and institutional investors across the UAE and GCC, with the subscription period running from July 7 to 25.
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Al Mal Capital REIT has a proven and stable track record, having delivered a 7 per cent distributed return since 2023, supported by 100 per cent portfolio occupancy with stable lease rentals and a Weighted Average Unexpired Lease Term (WAULT) of approximately 20 years. The REIT continues to target consistent returns of approximately 7 per cent for investors. The strategic capital raised through the FPO will be used to enhance the REIT’s portfolio by acquiring additional income-generating assets in resilient sectors such as healthcare, education, and mission-critical industrials, further enhancing the REIT’s growth and diversification.
To preserve ownership and minimise dilution, a priority allocation will be available to existing investors in the register of unitholders as of the Record Date (26 June 2025). These investors may subscribe to approximately 39 per cent or more of their current holdings to maintain their ownership share and avoid dilution. A secondary allocation of unsubscribed units will include a Minimum Guaranteed Allocation (MGA) of up to 2,000 units per eligible new subscriber, subject to request and availability.
The new units are expected to be allocated between 1-8 August 2025, with trading of the same units anticipated to commence on the Dubai Financial Market approximately between (DFM) 8-15 August 2025, subject to regulatory approvals.
Investors can subscribe through the First Abu Dhabi Bank (FAB) bank branches, via online/mobile banking (for FAB clients), through Central Bank’s payment system, or via Manager’s cheque. FAB is acting as the Lead Receiving Bank for the offering.
Al Mal Capital REIT is a closed-ended real estate investment trust that is currently invested in a diversified portfolio of income-generating real estate assets in the UAE, based on secure long-term lease agreements with a strong credit profile. The Fund provides UAE and GCC investors with access to an asset class with long-term fundamentals, based on a strategy focused on investing in real estate assets in strong-performing UAE sectors including healthcare, education and industrial.
The property market in Dubai has experienced a significant boost due to an influx of new residents since the onset of the pandemic, resulting in property prices increasing by as much as 70 per cent between November 2020 and December 2024.
"The fundraising will support the expansion of the Reit’s portfolio of income-producing real estate assets, carefully chosen from stable growth sectors such as education, healthcare, and essential industrial assets. From a policy perspective, Dubai’s education strategy E33 aims to have at least 100 new private schools by 2033, of which 10 were already added in 2024–25. Additionally, according to the KHDA, Dubai’s private school sector continues to demonstrate strong growth, with student enrollment increasing by 6 per cent, higher education enrollment surging by 20 per cent and international student numbers rising by 29 per cent during the 2024-25 academic year. These robust trends validate that the UAE’s education infrastructure is expanding rapidly, positioning Al Mal Capital Reit well to capitalise on the demand," Vijay Valecha, Chief Investment Officer, Century Financial, told Khaleej Times.
The issuance price of Al Mal Capital Reit is Dh1.10, aligning with the Dubai Residential Reit’s offering. Although Al Mal Reit’s market capitalisation is currently modest at Dh529.31 million, compared to Dubai Residential Reit’s Dh16.12 billion, this indicates considerable growth potential. Its targeted strategy in the resilient education sector provides investors with a distinctive and defensive asset class. The NAV per unit as of May 31st is $1.12. "Hence, the offer price of Al Mal Capital is at a 1.78 per cent discount to the offer price," Valecha said.
Somshankar Bandyopadhyay is a News Editor with close to three decades of experience. Currently, he manages the business section, ensuring that the top economic and business news of the day reaches its readers.
