Jasser al Aulaqi, CEO of Shumookh Fund Management, launched a RO65.48mn worth Oman REIT Fund (under formation), one of the largest real estate investment funds in the sultanate, on Thursday.

The fund’s RO26.1mn IPO, representing 40 per cent of the total fund, of which the issuer can accept up to RO39.2mn – representing 60 per cent of the total fund – will be available for subscription from January 17, 2021, until January 31, 2021. 

Shumookh Fund Management is the sponsor and investment manager of the fund while United Securities is the issue manager, handling the public offer.

Making the announcement at a press conference held in Sheraton Oman Hotel , Aulaqi said, “Oman REIT Fund offers an investment opportunity to investors to participate in Oman’s high potential real estate market by allowing them access to a diversified portfolio of real estate assets located at strategic locations across the sultanate. Oman REIT Fund could be a game changer in Oman’s real estate sector. The fund presents investors with multiple benefits, including stable and high income, hedge against inflation and high liquidity along with professional management of their wealth by a team of investment experts.”

The fund aims to pay an annual dividend of 7.5 per cent in the first year, which can grow up to 8.2 per cent in the fifth year.

The close-ended Oman REIT Fund will be listed on Muscat Securities Market (MSM) for secondary market trading upon closure of the IPO. The Capital Market Authority (CMA), sultanate’s regulator has already given the necessary approval for the fund to open to the public, Aulaqi informed.

The fund has its assets distributed across sectors to ensure higher and steady returns, he noted, adding that residential cum commercial properties represent half of the fund’s allocation, followed by office and retail assets – 30 and 14 per cent respectively. Logistics and industry properties make up the rest.

Hopeful of growth in Oman’s real estate sector, Aulaqi said, “Supported by the government’s continued focus on economic diversification, the sultanate’s real estate sector is poised for vibrant growth, and this makes Oman REIT Fund an unmatched investment tool. The fund has in place an active asset management strategy and the availability of asset pipeline at an attractive valuation significantly enhances its appeal. Oman REIT Fund is arguably the largest real estate investment trust in the sultanate with the total appraised value of properties pegged at RO65.48mn. It has a diverse portfolio of as many as 20 high-worth individual property assets spread across the capital area including Ruwi, Madinat Qaboos, Qurm, Al Khuwayr, Ghala, Rusayl and Misfah, with a strategic mix of residential and commercial, retail, office and industrial as well as logistics properties. The ranking of the fund is expected to be on top upon listing on the MSM, in terms of market cap,” he continued. 

According to Tariq Abdelrazeq, deputy general manager of United Securities, the current offering consists of 261,903,576 units with the right to accept up to 60 per cent of the offer, each unit priced 102bz (unit price 100bz, 2bz issue expenses). 

The fund is open for subscription to both Omani and non-Omani individuals and juristic persons.