Public issue of Oman’s Pearl REIF slated during Q4

A new Real Estate Investment Fund (REIF) set up by majority government-owned Omantel in collaboration with Oman Investment Authority (OIA) will be floated on the Muscat Stock Exchange (MSX) before the end of this year, according to a top official of the Omani telecom company.

Talal al Maamari, CEO – Omantel, said the Pearl REIF Fund will be listed on the Omani bourse via an Initial Public Offering (IPO) in the fourth quarter of this year. He made the announcement during an investment forum hosted recently by the MSX.

Earlier this year, Omantel announced the establishment of Pearl REIF with a share capital of RO 42.477 million. As its contribution to the Fund, Omantel said it had entered into an agreement with Pearl REIF for the sale and leaseback of its headquarters building in Madinat Al Irfan in Muscat Governorate. In consideration of this in-kind contribution, Omantel would receive 279.086 million units of RO 0.100 each in the REIF along with a cash amount of RO 27.091 million.

As part of the public offering by Pearl REIF, Omantel intends to dispose of units amounting to RO 13.8 million, representing an ownership interest of 32.2 per cent, before the end of the year.

The transaction, centring on the sale and leaseback of its administrative landmark, is part of Omantel’s ‘asset lite’ strategy aimed at the deleveraging of its existing assets, the telecom firm said at the time.

When eventually listed on the Omani bourse, Pearl REIF will be the third such Real Estate Investment Fund to be launched in the Sultanate of Oman in line with government efforts to enhance investment inflows into the real estate and property sector, as well as boost liquidity on the MSX.

Aman REIT – the country’s maiden Real Estate Investment Trust – was launched in Oman in Q1 2020. A second fund, known as Oman REIT, was rolled out a year later, covering a portfolio of residential, commercial, retail and warehousing properties distributed all over the country.

Real estate funds provide options for investors to invest in real estate and own investment units in addition to allowing foreign investor to own investment units in the fund to attract foreign capital.