Real estate funds in Saudi Arabia are designed for long-term investing, so it’s important to know how and when you can exit before you commit. Here’s what to expect:
1. No Early Exit Options (For Now)
Once you invest in a Saudi fund on Stake, you're committed for the full duration of the fund.
This means:
- You can’t withdraw early or sell your units mid-way through the fund cycle.
- You’ll receive your full capital and final returns only after the fund ends and assets are sold.
2. What Happens at Exit
At the end of the fund’s term:
- The fund manager sells the real estate assets.
- The sale proceeds are distributed proportionally to all investors based on their unit ownership.
- Your investment is officially closed, and you’ll receive a final return summary.
3. Extension Periods May Apply
Some funds may include an optional extension period built into the terms.
For example:
- A 3-year fund might include a 1-year extension to allow more time for asset sales.
- This flexibility helps the fund manager maximize returns by waiting for favorable market conditions.
Pro Tip: Always check the fund’s documentation for exact terms, duration, and potential extension windows before investing.