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Oman REIT adds logistics park in new acquisition

KOM-4, one of many assets that form part of Oman REIT’s portfolio.
KOM-4, one of many assets that form part of Oman REIT’s portfolio.

MUSCAT: Oman REIT, the first diversified multi-asset Real Estate Investment Trust (REIT) in the Sultanate of Oman, has announced the successful addition of a logistics park to its expanding portfolio of assets.

Publicly-traded Oman REIT, which is listed on the Muscat Stock Exchange (MSX), stated in a filing earlier this week that it has acquired a portfolio of eight warehouses located in Rusayl Industrial City for a total consideration of RO 6.550 million.

“The newly acquired assets are multi-tenanted by renowned industrial and commercial tenants in the local market, boasting an unexpired lease term of four years, aligning with our strategy of stabilizing future returns and increasing the overall portfolio WAULT (‘weighted average unexpired lease term’), as well as diversifying the asset combination of the portfolio,” the Muscat-based fund said.

The acquisition price, it further noted, is comprised of a cash consideration of RO 4.585 million paid from the company’s existing credit facilities with Muzn Islamic. “The remaining RO 1.965 million will be paid to the seller via a private placement of units in Oman REIT at 100 bz per unit to be issued following an upcoming EGM, which will be announced shortly.”

FIM Partners, an Emerging Market & Frontier Manager, which manages Oman REIT, said the transaction increases the Fund’s “industrial & logistics weightage to c. 20% of the REIT's total assets”.

“Since being appointed as Oman REIT’s manager in July 2022, we devised and have been executing on a comprehensive business plan to enhance the REIT’s performance and fully rebrand the REIT. Thus far, this involved raising a RO 30 million senior facility to acquire additional assets and further diversify and rebalance the REIT's portfolio, enhancing the REIT's dividend yield by c. 30%, and extending the REIT’s WAULT from c. 2.1 years to c. 4.2 years,” added Fares Bou-Atme, Director – Real Estate, FIM Partners, in a post.

MAQ Legal, which advised Oman REIT and its investment manager, FIM Partners, on the transaction, said the latest acquisition by the fund should help with “execution of its business strategy to enhance the REIT's performance and returns to its investors”.

Listed on the MSX in February 2021, Oman REIT’s portfolio comprises a diversified pool of 18 assets across office, logistics, retail and residential assets classes in Muscat and Salalah.

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