Dolmen City REIT public offering under-subscribed

KARACHI: The public offering of 25 percent units of Dolmen City Real Estate Investment Trust (REIT) has been under-subscribed by 48.5 percent, a bourse filing said on Friday.
At least 71.528 million units of Dolmen City REIT have been subscribed against the offered 138.981 million units for the general public in the last week.
According to the results issued on Friday, the fund managers could be able to raise only Rs786.812 million as against the planned Rs1.528 billion.
Arif Habib Dolmen REIT Management Limited is a joint venture between the Arif Habib Group and the Dolmen Group, which launched the fund.
Only 25 percent of total units were offered to general public, corporations and high net worth individuals. Of that, one-fourth was earmarked for the retail investors.
Arif Habib Dolmen REIT Management Limited holds three-fourth of the total units.
Dolmen City REIT is a closed-ended, Shariah compliant rental REIT which offers investors the opportunity to become unit holders of two component of the Dolmen City project, Dolmen Mall Clifton and The Harbor Front.
The properties will generate rental income that will be distributed by the REIT scheme among unit holders in the shape of dividends.
Traders and the REIT’s main advisor earlier said the initial offer for 75 percent of the trust to institutional investors and high net-worth individuals through book building last week drew demand of more than Rs7 billion for an offering of shares worth Rs4.17 billion at a floor price of Rs10. At the strike price, the initial offer raised Rs4.59 billion, according to the REIT’s lead manager.