The Capital Market Authority Announces the Approval of the Capital Increase of Real Estate Investment Traded Fund "Riyad REIT"
Wednesday, February 28, 2018 at 5:29 PM
Wed Feb 28, 2018 17:29
The Capital Market Authority has issued its resolution approving the Riyad Capital Company's request to increase "Riyad REIT" capital from SR 500,000,000 to SR 1,633,000,000 for acquiring real estate assets.
Such approval was granted upon the Riyad Capital Company's request complained with the relevant disclosure requirements as per the Real Estate Investment Funds Regulations and Real Estate Investment Traded Funds Instructions.
Prior to meeting of unitholders that will be held to vote on the capital increase, the Riyad Capital Company will publish the terms and conditions of "Riyad REIT" to unitholders including the objectives and rationale of the capital increase. The Terms and Conditions of "Riyad REIT" must include all relevant information the unitholders need to know before making a voting decision on the capital increase for the said purpose, including information on the acquisition transaction and risk factors.
A voting decision without reading the terms and conditions of "Riyad REIT" carefully or fully reviewing its content may involve high risk. Therefore, unitholders should carefully read the terms and conditions of "Riyad REIT" in order to make a well-informed decision when voting on the capital increase resolution for the said purpose. If the terms and conditions of "Riyad REIT" proves difficult to understand, it is recommended to consult with an authorized financial advisor.
The CMA’s approval of a particular Riyad Capital Company's request to increase "Riyad REIT" capital should never be viewed as an endorsement of the feasibility of the capital increase for the purposes of a transaction. The CMA’s approval of a Riyad Capital Company's request to increase "Riyad REIT" capital merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.