Fund goals
The fund goal is to maximize the capital by investment in real estate throw bought a pure lands under important factors like location , future of land , adding value and income of investment .then development them by essence services , basic improvement , then lay out them. After that sell the land by cash to make profit for customers . AL-Rajhi company will be the manager of the fund and it will be corporate with a choice real estate company with big experience as a council , improver , and marketer for the fund assets
Profits dived and capital recovery
The real estate activity is known by cost of out come investment at start of the project, when the project is complete the project began to harvest profits after selling . The fund manager is not make any profit divide at the beginning age of the project , until there to come cash flows after lands sold and make profit , then the fund manager will be available to make divides from the selling process , until the fund capital is recover.
Exist of the fund
AL-Rjhi first real estate fund is divided as a closing fund , which mean the investors cant allowed to take their money during the fund age . But it is allowed to transfer the units between the fund units holders or for a persons out of the fund , and the fund manager cant determine the units price , he is just responsible to documentation the transfer between the seller and the buyer
Investment Risks
Although there is an expectations for an increase in the real estates demand, but in some contestations it may demand is less for the pure land, which may slow the fund leach until sold out all the lands. The fund manager will aim to avoid these risks by make the economic and technical studies by an experience specialists. Also there may be decrease in the value of the fund assets if a shake happened to the real estate markets at the time of selling.
Characterize of The Fund
Fund kind : closing not allowed to receive money during fund age
Capital of fund : 500 million Riyals
Coinage of fund : Saudi riyal
Fund age : 3 years
Minimum amount of subscription: 375000 Saudi Riyal
Unit price at foundation time : 100 Saudi Riyal
Estimate of fund units: every six months
Rate of subscription : 0.5%
Management fee: 0.2%