The Pearl Real Estate Investment Fund (The Pearl REIF), the biggest Shariah-complaint fund of the Sultanate of Oman, has announced the opening of its initial Public Offering (IPO). Subscription opened on Sunday, October 16, and runs until October 30, 2022.
Oman Investment Authority (OIA), the integrated sovereign wealth fund of the Sultanate of Oman, and leading telecom operator Omantel are the promoters of The Pearl REIF. Sohar International is the Investment Manager and also the Issue Manager for the IPO.
The promoters of the Fund will divest 49 per cent of their stake through the IPO. Accordingly, the Fund is offering 208,137,400 Offer Units at a price of 112 Baizas per Offer Unit (including an Offer Price of 110 Baizas and Offer Expenses of 2 Baiza per Offer Unit for subscription).
According to the promoters, The Pearl REIF IPO is a unique opportunity for common investors to benefit from income-generating real estate investments. Historically, they were attractive only to large investors due to the size and scale of such investments. However, with The Pearl REIF, common investors have the same opportunity as well.
Highlighting the offer, Wahbi Sulaiman al Riyami, Chairman, The Pearl REIF (representing Omantel) said, "The Pearl REIF is a compelling and rare opportunity for investors considering real estate to diversify their portfolios. The strong promoters and marquee tenants of these properties will demonstrate the strength of the offering. I’m confident that retail investors will see the potential of this offering positively." At initiation, The Pearl REIF has two marquee tenants: Omantel and Lulu Group. Omantel has already confirmed a definitive agreement with The Pearl REIF for the sale and leaseback of its iconic headquarters building located in Madinat Al Irfan. Lulu Hypermarket Salalah has also a long-term lease agreement for the property.
Aown Abbas al Bahrani, Deputy Chairman of the Pearl REIF and Director of Public Markets at OIA, said: "The IPO of Pearl REIF is underpinned by the strength of the experience and expertise of the fund management body, the investment manager, and the issue managers We are confident that the public Investors will utilise this unique opportunity." The Pearl REIF has projected an Average Distributable Profit Yield of 9.2 percent, which compares favorably to other yield instruments in Oman such as term deposits, perpetual bonds or Sukuk.
The Pearl REIF has appointed a collection syndicate consisting of banks and prominent brokerage firms who would be accepting application forms for the IPO through electronic channels. All applicants must have an account and Investor Number with Muscat Clearing & Depository (MCD). Any applicant may apply to obtain an investor Number and open an account by completing the MCD application forms. This may be obtained from the MCD or its website at www.mcd.gov.om, or from brokerage companies licensed by the CMA.
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