RIYADH: Riyad REIT Fund has invested SR62 million ($17 million) in a private closed-end real estate fund that is income-generating and Shariah-compliant, according to a bourse filing.
The private fund, which is managed by Riyad Capital, seeks to achieve stable current income and long-term capital growth by investing in top-tier institutional real estate assets located in prime Saudi Arabian locations.
The private real estate fund has a target size of SR3 billion, and the initial closing amount is SR315 million.
The fund has a term of 20 years that can be extended for an additional five years.
The investment will generate 8.5 percent per year in return over a five-year period if it is invested semi-annually, it added.