- Alistithmar Capital (“ICAP”) Real Estate practice was established in 2012 to provide its investors access to attractive real estate investment opportunities
- ICAP is uniquely positioned to leverage the team’s vast real estate experience and contacts to originate and execute opportunities that delivers attractive returns to its investors
- Our approach is to partner with the best in class developers, co-manager, operators, lawyers, advisors and consultants that will ensure we achieve the stated investment objectives
- We judiciously use leverage to maximize expected returns for our investors. In our existing funds we have successfully obtained 1:1 financing from local banks.
- We follow a rigorous due diligence process to select any new real estate opportunity, which includes:
- Financial due diligence
- Legal due diligence
- Market studies
- Track record and capabilities of developer / co-manager
- ICAP team uses advanced modeling software to conduct financial forecasting and conduct fund management activity
Our investment objective and strategy :
We follow investment objective that generates long-term capital appreciation for our investors.
We also deploy investment strategies that will help us to achieve the stated objectives as follows :
- Selecting and working with developers / co-managers that have proven execution capabilities and established brand equity
- Investing in projects that generate superior risk-adjusted returns
- Leveraging the team’s expertise in investment structuring and thorough understanding of investment regulations
- Formulating clear exit strategies at the time of investment
- Follow high standards of transparency, governance and reporting norms
ICAP offers wide range of real asset investment products across various real estate types and strategies. We are recognized as a real asset manager with access to some of the best deal flow in Saudi Arabia.
Kingdom of Saudi Arabia
Development strategy: we aim to enhance long-term capital growth for our investors through investment in attractive development projects in KSA.
- Infrastructure development (raw land)
- Superstructure development (buildings, towers, malls etc)
Income strategy: it is our team’s endeavor to make high quality investments that offer stable projected cash flow at high going-in yields and to enhance returns.
- Dividend play through private funds
- Dividend play through Real Estate Investment Trusts (REIT)
International real estate (on very selective basis)
- Development strategy
- Income strategy
Custody for REIT
- We provide custodial services for Real Estate Investment Traded Funds (REIT) that are offered by local fund manager’s
About the project: To develop two G+14 level towers, on a prime plot of land in the Olaya district of Al-Khobar measuring 8,000m2. The tower will comprise of premium apartments that will be positioned as full-service, gated residential complex.
Investment objective: The investment objective of the Fund is to deliver attractive medium-term capital appreciation for its investors through development of premium residential apartments on a prime plot of land in Al-Khobar.
Fund size: the total fund size is SAR 242 mn, with 51% contribution coming from equity investors and 47% through Shariah compliant financing.
Fund term: Three years from the fund closing, with the possibility to extend for two additional one year period
About the project: To develop infrastructure of a raw land located in the northwest district of Hittin in the city of Riyadh. The total area of the land is 366,000 m2. Streets, electricity, sidewalks, drainage, water and all of the services that must be met by the applicable regulations, will be developed and then plots of land will be sold by auction
Investment objective: The investment objective of the Fund is to deliver attractive medium-term capital appreciation for its investors through acquisition of the Property, its infrastructure development and sub-division into serviced plots, and the sale of the ensuing parcels leading eventually to termination and liquidation of the Fund.
Fund size: the total fund size is SAR 700 mn, with 53% contribution coming from equity investors and 47% through Shariah compliant financing.
Fund term: Two years from the fund closing, with the possibility to extend for two additional one year period.
About the project: Ajdan Rise Real Estate Development Fund by Alistithmar Capital seeks to generate capital appreciation by delivering attractive capital returns for its investors through developing a commercial & residential tower G+36 floors, located on the seafront in the Corniche area of Al Khobar. The goal is to provide luxurious apartments, designed in a highly elegant level that is incomparable to any other residential tower in Al Khobar, in addition to some commercial service stores. This will allow the Fund to benefit from the privileged project location and its direct panoramic view on the Gulf.
Investment objective: The investment objective of the Fund is to deliver attractive medium-term capital appreciation for its investors through purchasing the property, developing it into a residential/commercial tower, selling its developed residential/commercial units and then terminating the fund.
Fund size: The total fund size is SAR 522 Million, with 38% contribution coming from equity investors, along with off plan sales and 62% through Shariah compliant financing.
Fund term: Four years from the fund closing, with the possibility to extend for two additional one year period.
Why do people invest in real estate?
Historically real estate has been one of the most trusted asset class for investors. It has always been an essential component in any diversified investment portfolio – helping reduce volatility and enhance returns through both income and capital-appreciation potential.
Is real estate fund investment risk-free?
Ans) no, there is inherent risk in all types of investment. For details please refer to the fund prospectus.
Can anyone invest in ICAP real estate funds?
Ans) depends on the offering type (e.g. private or public offering) and the minimum amount
Do you make advertisement for your funds?
Ans) most of our funds are private placement; hence you will not see any advertisement. You can contact our wealth management team to record your interest in our funds, who will contact at the time of new fund offering
Do ICAP real estate funds pay dividend?
Ans) it depends on the fund strategy; dividend payout funds are clearly categorized as income generating fund.
What is a REIT?
Ans) Real Estate Investment Trust are investment funds that are listed on stock exchange and be bought/sold like Stocks. Almost 90% the income earned by the underlying investments of REIT is paid as dividend.
Can subscription / redemption for real estate funds be done online?
I am land owner and want to work with ICAP, whom should I contact?
Ans) you can contact our real estate team at….
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