Fund Information

Category of Fund

Real Estate and real estate-related assets.

 

Type of Fund

Income and growth.

 

Investment Objectives

The key objective for Al-'Aqar Healthcare REIT is to provide Unitholders with stable distributions per Unit with the potential for sustainable long term growth of such distributions and the Net Asset Value per Unit. 

 

Investment Strategies

The principal strategies shall be in accordance to Syariah and shall include:

  • managing the Properties effectively;
  • maintaining net property income;
  • maximising the return and performance of each Properties and their growth via enhancements to the Properties;
  • raising the profile of the Properties;
  • acquiring property assets with good yiled and growth potential both locally and abroad that meet the Manager's investment criteria; and
  • employing a optimum capital structure with appropriate debt and equity financing strategies.

Portfolio Composition

Al-'Aqar Healthcare REIT's investments may be allocated in the following manner as prescribed by the Guidelines on REIT and the Guideline for Islamic REIT:

  1. at least 75% of Al-'Aqar Healthcare REIT's total assets shall be invested in Syariah compliant real estate, single-purpose companies which are Syariah-compliant, Syariah compliant real estate-related assets or liquid assets;
  2. at least 50% of Al-'Aqar Healthcare REIT's total assets must be invested in Syariah compliant real estate or single-purpose companies which are Syariah compliant; and
  3. the remaining 25% of Al-'Aqar Healthcare REIT's total assets may be invested in other Syariah compliant assets (i.e. Syariah compliant real estate-related assets, Syariah compliant non-real estate-related assets or Islamic asset-backed securities).

Diversification

Al-'Aqar Healthcare REIT will seek to diversify its Syariah-compliant real estate portfolio by property and location type. Al-'Aqar Healthcare REIT will primarily be focused on investing in real estates which are primarily used for healthcare purposes and will continue to look for opportunities that will provide attractive returns.

 

Leverage

Al-'Aqar Healthcare REIT will be able to leverage on its financing to make the permitted investments. Leveraging on its financing will enable the returns unitholders to increase.

 

Financing Limit

Up to 50% of the total asset value of Al-'Aqar Healthcare REIT at the time the financings are occured.

 

Investors' Profile

Best suited for the following investors:

  • have funds but do not have the time or expertise to find, select, negotiate, purchase and profitably managed properties;
  • have limited funds who wish to, but cannot, finance investment in Syariah-compliant propertt on your own account;
  • wish to seek capital growth on a spread of Syariah-compliant real estate investments; and 
  • do not want to see your fund eroded by inflation without some capital measure of capital appreciation whilst at the same time retaining reliable and ready access to your capital.

Distribution Policy

For each distribution period, the Manager shall distribute all (or such lower precentage as may be determine in Manager absolute discretion) of the DBI and CEI of Al-'Aqar healthcare REIT within two (2) months after Al-'Aqar Healthcare REIT's book closure date. Maintain minimum distribution of at least 95% of its distributable income.

 

Revaluation Policy

The real estates will be revalued at least once every three (3) years from the date of last valuation.

 

Redemption policy

Unitholders have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their listed Units through trading on Bursa Securities. Listing of the Units on Bursa Securities does not guarantee a liquid market for the Units.

 

Board Lot

100 Units per board lot.

 

Minimum Initial Investment

The minimum board lot size of 100 Units or other board lot size as determined by Bursa Securities.

 

Minimum Additional Investment

Minimum board lot size of 100 Units or other board lot size as determined by Bursa Securities.

 

Salient Terms of the Lease Agreement

The salient terms of the Lease Agreement are as follows:-

  1. The contractual term of the Lease Agreement shall be fifteen (15) years commencing from the date of the Lease Agreement with an option to renew the Lease for another fifteen (15) years subject to the terms and conditions to be agreed upon by the Trustee and Tenants of each Property;
  2. The rental of the Demised Premises (i.e. the Properties) shall be reviewed after every three (3) full financial years throughtout the Contractual Term up to a maximum of fifteen (15) years and shall be negotiated between the Landlord and the Tenant; and
  3. The review of the yearly rental amount for the next three (3) financial years shall be calculated based on the following formula :-
  • 1st year of every review : (10-year MGS + 238 bps) x market value of the Properties at the point of review and subject to a minimum rental and a maximum 2% incremental over the preceding year's rental amount.
  •  
  • 2nd year and 3rd year of every review: 2% incremental over the preceding year's rental amount.

     (as defined in the Lease Agreement)