Dubai-listed Al Mal Capital REIT has unveiled plans to raise fresh capital through a follow-on public offering (FPO), aiming to strengthen its portfolio of revenue-generating properties.

The real estate fund, which operates under the management of Al Mal Capital, a part of Dubai Investments group, intends to issue up to 220 million new units, each priced at AED1.1.

The subscription window for the offering is scheduled to open on July 7 and will remain available until July 25. Subject to regulatory clearance, trading of the newly issued shares is expected to begin around August 8.

In its announcement, the REIT invited existing unitholders, alongside both retail and institutional investors from across the UAE and the wider GCC, to participate in the offering.

Following approval by the UAE’s Securities and Commodities Authority (SCA), the capital raise could boost the fund’s size from AED514 million (around $140 million) to approximately AED734 million ($200 million).

The raised funds will be directed towards purchasing new real estate assets within sectors identified for their strong growth and resilience, such as healthcare, education, and key industrial facilities deemed essential for operations.

Managed by a skilled investment team with considerable experience in commercial property markets, Al Mal Capital REIT has a solid reputation for handling assets that deliver steady income.

It also benefits from strong regulatory backing under the SCA’s REIT framework, with oversight provided by a seasoned investment committee tasked with maintaining compliance and evaluating opportunities.

Naser Al Nabulsi, Vice Chairman and CEO at Al Mal Capital, noted: “There is a growing investor appetite for regional REITs as shown by recent offerings on the DFM that saw record-breaking retail participation, especially in the UAE.”

He continued: “We are therefore pleased that we can offer more investors a chance to access Al Mal Capital REIT, the first REIT listed on the DFM, which continues to deliver strong and consistent dividends.”

In this offering, priority will be given to investors who were holding units as of June 26, with subscription rights allowing them to purchase additional units amounting to around 39% of their current holdings. New investors will be eligible for a minimum guaranteed allotment of up to 2,000 units, depending on the level of interest.

Additionally, the fund announced it will distribute an interim cash dividend of AED0.0375 per unit for the half-year period ending June 30, 2025, representing an annualised yield of 7.5%. To qualify for this payout, investors must have purchased units by June 24, with the record date confirmed as June 26.

Al Nabulsi also highlighted: “Our focus on resilient real estate sectors which offer sustainable and recurring income based on secure cashflow and long-term demand, will be very attractive for both institutional and retail buyers.”

Since 2023, Al Mal Capital REIT has delivered a 7% return and continues to target annual returns in the region of 7%, operating within the SCA’s regulated REIT framework and under the guidance of an experienced oversight committee.