Dubai-based asset manager Al Mal Capital’s REIT unitholders approved a proposal to increase the fund’s capital by up to AED 300 mn, from the current AED 513.9 mn, according to a disclosure to the DFM (pdf). Al Mal is a unit of Dubai Investments.

The details: The firm will issue up to 300 mn new units, priced at AED 1.1 per unit. The units will be offered through a public offering, with an issuance fee of 2.5 fils per unit to cover professional expenses.

Background: The REIT completed a AED 180 mn capital increase from a tradable rights issue last year. The firm was looking to raise up to AED 440 mn in new capital if the rights issue was fully subscribed. The company said it would use the proceeds to execute its investment strategy, which is geared at diversifying the portfolio, with a minimum of 75% of the funds allocated in the UAE and up to 25% in the GCC and other countries

What’s next? Upon receiving approval from the Securities and Commodities Authority (SCA), detailed information about the offering will be disclosed through an official announcement on the Dubai Financial Market (DFM).

ALSO- The REIT secured unitholder approval to acquire a hospital asset in Dubai valued at AED 350 mn, according to a press release (pdf). The property is owned by a party related to both the fund manager and some of the REIT’s unitholders. The fund manager has been granted full authority to negotiate, finalize, and execute the acquisition.

Tags: