Looking for the best investment option? Oman REIT Fund could be the best bet

Business Saturday 23/January/2021 17:59 PM
By: Times News Service
Looking for the best investment option? Oman REIT Fund could be the best bet

Muscat: With the launch of the OMR65.48 million Oman REIT Fund, and its OMR26.1 million initial public offering (IPO) that can go up to OMR39.2 million, both Omani and non-Omani investors are presented with an unmatched opportunity to park their money safely in one of the most promising investment instruments in the Sultanate.

Allowing subscribers to the fund to participate in the high potential Omani real estate sector in a hassle-free manner, Oman REIT Fund offering amazing returns with a targeted annual dividend of 7.5 per cent that is expected to grow to 8.2 per cent over five years.

Investment analysts look at Oman REIT Fund as a game-changer in the Sultanate’s real estate investment domain, given the multiple benefits offered to the Fund’s subscribers. From stable and high income, hedge against inflation, long term capital appreciation and high liquidity to the professional management of the fund by expert wealth managers and the diversified, balanced and high-occupancy asset portfolio that are spread across strategic localities and sectors in the Sultanate, Oman REIT Fund has positioned itself as a pioneer and leader in Oman’s REIT sector.

According to Jasser Al Aulaqi, Chief Executive Officer of the managing company, “Oman REIT Fund’s core objective is to provide investors with a diversified, stable and sustainable income stream, while also allowing them to benefit from organic growth and value-added opportunities so that unitholder returns are maximised.”

Explaining how Oman REIT Fund qualifies as the best-in-class investment instrument available today Tariq A. Razeq, Deputy General Manager of the Issue Manager, highlighted some of the outstanding features of the Fund.

“The key investment features of the Fund include attractive yield driven by a large and scalable pan-Oman asset portfolio; distribution of stable and high dividend continuously; the large fund size; and the opportunity to gain exposure to a potential recovery in Oman’s real estate sector. The fund is also attractive as Oman’s economic diversification efforts are expected to bring in positive results and the real estate sector’s contribution to national GDP is set to rise considerably. The long tenure of the assets is another factor that enhances the value and appeal of Oman REIT Fund,” he said.

Distributed across premium residential cum commercial, office and retail, logistics and industrial properties, the diverse range of assets owned by Oman REIT Fund is poised to take full advantage of the government’s focus on economic diversification that drives the growth and sustainability of Oman’s vibrant real estate sector, as well as the government’s Vision 2040 that stresses on high-paced infrastructure development.

The fund, which is operated by an active asset management strategy, has the added appeal of the availability of a remarkable asset pipeline at an attractive valuation. Presently the Fund has as many as 20 high worth individual property assets in different governorates.

Additionally, what invests Oman REIT Fund attractive is the prevailing low real estate prices in the Sultanate due to the COVID-19 crisis and the potential rise in prices once the situation reverts to normalcy.

Oman REIT Fund is managed by Shumookh Fund Management, and its issue manager is United Securities.