Global law firm Clyde & Co has advised MEFIC Capital on the launch of its SAR 1.23 billion Real Estate Investment Traded Fund "MEFIC REIT" (the Fund) in Saudi Arabia. MEFIC Capital plans to list SAR 879.5 million of the Fund's units on the Saudi Stock Exchange (Tadawul) this month, which will make it the REIT with the largest public offering in Saudi Arabia.
Clyde & Co's dedicated corporate team supported MEFIC Capital throughout the course of the Fund set-up, including advising on the legal structuring, contracts and other considerations to ensure the Fund's compliance with the Capital Markets Authority (CMA) regulations and applied laws in Saudi Arabia.
The Fund will provide investors access to the Saudi and UAE real estate market through eight properties and will be open to Saudi citizens or companies with a Saudi presence exclusively. The Fund will offer the lowest management fees in the market (0.35%) and a guaranteed minimum 2% annual return when the fund doesn't meet the 5% investment threshold, becoming the first listed real estate fund with a guaranteed return in Saudi Arabia.
Alain Sfeir, Corporate Partner at Clyde & Co in Saudi Arabia, comments: "MEFIC REIT is the first of its kind and illustrates the type of significant developments we currently observe in the Saudi investment market. The size of the Fund's public offering gives you an indication of the appetite for Saudi diversified investment opportunities at the moment."
Turki Al Fozan, Head of Real Estate Investments at MEFIC Capital, says: "We're offering the market one of the most diversified listed funds, not only in terms of geographic locations but also in terms of sector coverage, ranging from residential to hospitality. Clyde & Co's advice on the unique and complex structuring of the Fund has been highly valued and showcases the expertise and know-how they possess in Saudi Arabia.”
The Clyde & Co team in Riyadh was led by Alain Sfeir, who was assisted by Saud Alsaab (Legal Director – Insurance), Hamad Al Muslem (Associate – Corporate) and Shahd Makhafah (Junior Associate – Corporate).
Clyde & Co has operated in Saudi Arabia since 2009, and is now the only international law firm with fully integrated office in the country with 4 Partners and 40 staff, offering a wide range of legal services across all sectors to both local and international companies.
Clyde & Co has forged a reputation as a go-to firm for Corporate transactions across the Middle East, with the largest Corporate practice in the region with 20 partners and over 70 experienced lawyers. Clyde & Co has assisted clients in realising their investments, gaining access to new markets through organic growth/strategic acquisitions and in achieving their corporate objectives for more than 25 years in its key focus sectors of insurance, education, energy, healthcare and defence & security. Clyde & Co has the largest presence and is one of most experienced international law firms in the Middle East with over 40 partners and 400 staff, based full time in Abu Dhabi and Dubai in the UAE, Doha in Qatar, Muscat in Oman and Riyadh in Saudi Arabia, providing a full-service commercial offering of local specialists across most business sectors and practice areas.