MUSCAT: In what could be termed the biggest real estate fund listing in the Sultanate, Oman REIT Fund will be launching its initial public offering (IPO) from 17 January 2021. The 15-day IPO subscription period will end on 31 January.
Managed by Shumookh Fund Management LLC, Oman REIT Fund offers RO26 million worth of units priced 102 baiza per unit that is inclusive of an issue expense of 2 baiza.
Distinguished as the first Omani real estate investment trust with a diversified and steady income-generating portfolio of assets in the Sultanate, the Fund will be managed by an innovative investment strategy aimed at ensuring attractive returns for investors, according to Jasser Saleh al Aulaqi, CEO of Shumookh Fund Management.
“The public offering provides a great opportunity for investors in the Sultanate to take advantage of the resilient and developed real estate in Oman and enjoy stable and sustainable income. Offering a quarterly dividend that will provide an annual yield of more than seven percent, Oman REIT Fund is designed to maximize unit holder returns through innovative fund management strategies that focus on organic growth of a truly diversified asset list,” he said.
Pegged at 40 per cent of the Fund’s total issued capital valued at RO65 million, the public offer can potentially be raised to 60 per cent, he said, adding “The offer is open to all nationalities in the Sultanate. Both Omani and non-Omani individuals are welcome to apply.”
The Fund manages 20 properties, mostly premium residential cum commercial buildings, along with office, retail, logistics and industrial assets at strategic locations across the Sultanate with an aggregate built up area of 196,000 sq. m. and as many as 488 leases.
He said the Fund’s premium office assets located in prominent areas in Muscat enjoy high occupancy rates in excess of 90 per cent, and are leased by technology and SME clients. The office portfolio assets include a modern building in Oman’s leading Technology Park, Knowledge Oasis Muscat, with 121 tenants, while retail assets are spread across Muscat and Salalah with a total built up area of more than 10,000 sq. m. Oman REIT Fund also has properties catering to the light industrial/logistics sectors, and are located in Rusail and Misfa industrial areas.
Shumookh Fund Management has devised a five-year growth plan for the REIT Fund that aims to enhance the asset portfolio valuation from approximately RO 65 million as of end of August 2020 to more than RO 1 billion at the end of the plan, he continued.
Mr. Aulaqi noted that the Government’s continued focus on infrastructure development is sure to strengthen Oman’s real estate market, making REITs an attractive investment tool.