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Oman REIT Fund’s IPO to open for subscription from Sunday

11 Jan 2021

Oman REIT Fund, the sultanate’s biggest real estate investment trust (REIT) fund, will be launching its initial public offering (IPO) from January 17. The 15-day IPO subscription period will end on January 31.

Managed by Shumookh Fund Management LLC, Oman REIT Fund through its IPO is offering RO26mn worth of units priced 102bz per unit that is inclusive of an issue expense of 2bz.

Distinguished as the first Omani real estate investment trust with a diversified and steady income-generating portfolio of assets in the sultanate, Oman REIT Fund will be managed by an innovative investment strategy aimed at ensuring attractive returns for investors, JasserSaleh al Aulaqi, CEO of Shumookh Fund Management, said in a press statement.

He said, “The public offering provides a great opportunity for investors to take advantage of the resilient and developed real estate in Oman and enjoy a stable and sustainable income. Offering a quarterly dividend that will provide an annual yield of more than 7 per cent, Oman REIT Fund is designed to maximiseunitholder 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 RO65mn, the public offer can potentially be raised to 60 per cent of total issued capital, Aulaqi said.

According to Aulaqi, Shumookh Fund Management has devised a five-year growth plan for Oman REIT Fund that aims to enhance the asset portfolio valuation from approximately RO65mn as of the end of August 2020 to more than RO1bn at the end of the plan.

Oman REIT Fund manages 20 properties, mostly premium residential cum commercial buildings, along with office, retail, logistics and industrial assets at strategic locations across Oman with an aggregate built-up area of 196,000 sqm and as many as 488 leases.

Aulaqi noted that the government’s continued focus on infrastructure development is sure to strengthen Oman’s real estate market, making REIT funds an attractive investment tool.

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