Muscat Capital launches Al Masha’ar Fund to invest in real estate projects

MUSCAT: Muscat Capital, the Saudi-based investment banking subsidiary of Bank Muscat, announced the successful closure of its first Real Estate Investment Traded (REIT) fund.
The new Al Masha’ar Fund with a size of SAR 572 million has been launched with an objective to invest in high income yielding rental properties in the Holy cities of Makkah and Madinah in Saudi Arabia. The Fund will be listed on Saudi stock exchange (Tadawul).
Khalifa al Hatmi, Chief Executive of Muscat Capital, said: “Muscat Capital is delighted to announce the launch of its first REIT Fund aimed at providing a continuous source of income for investors through real estate assets in Saudi Arabia, especially in Makkah and Madinah.
The Fund will initially acquire three hotel towers in Makkah with yearly rental revenue up to 6.75 per cent and distribute cash dividends of not less than 90 per cent of the annual net profit, twice a year. The Fund is also authorised to invest in various real estate sectors such as commercial, educational and health care sectors.
In addition, the Fund is authorised to invest in development oriented projects up to 25 per cent of the Fund size in order to achieve value addition and optimisation of income for unitholders. We thank all investors for their trust and confidence in the Fund and remain committed to the development of the real estate market and capital market in Saudi Arabia.”
Muscat Capital is a boutique investment bank based in Riyadh, Saudi Arabia wholly owned by Bank Muscat. Operating since 2009, it is licensed and authorised by the Saudi Capital Market Authority to conduct the full range of securities services, including brokerage, asset management and investment banking advisory business.