Oman: New real estate investment fund gets listed on MSX

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MUSCAT: Jabal Asset Management, a Muscat-based investment fund, has announced the listing of its Jabal Real Estate Investment Fund (Jabal REIF) on the Muscat Stock Exchange (MSX) following a successful Initial Public Offering (IPO) last month. The official listing took place at the MSX Hall on July 10, 2024, in the presence of representatives from the Financial Services Authority (FSA), MSX and the REIF.

The Jabal Real Estate Investment Fund boasts a capital of RO 17,400,000, divided into 174,000,000 units priced at 100 Baisas each. The subscription period for the Fund ran from June 13 to June 27, 2024, and saw overwhelming interest from investors, exceeding the minimum target capital on the very first day.

Designed to meet the diverse needs of investors, the Fund is established as a closed-ended fund under REIF regulations and is listed on the Muscat Stock Exchange. It aims to invest in a variety of high-quality, income-generating commercial properties with resilient tenant profiles. Initially, the Fund will include two anchor assets: an office building and a warehousing complex in Oman, both boasting over 90% occupancy rates and leased to a diverse tenant pool.

While Jabal Asset Management serves as the investment manager, Sohar International Bank is the custodian and administrator of the Fund. Additionally, a professional property manager will be appointed to ensure effective management and monitoring of the properties. The Fund’s management team will actively seek new opportunities to maximize financial results.

Importantly, the Fund will not initially use borrowings for acquiring the portfolio, offering potential to increase returns by attracting leverage later, up to 60% as per REIF regulations. The Fund targets a long-term total return for investors that exceeds both inflation and deposit rates, with quarterly dividend distributions providing regular cash income.

Investors will benefit not only from professional management focused on generating strong, sustainable returns but also from increased accountability, with the Fund providing regular reports and public communication.

Majid al Lawati, a member of the Fund Management Body, commented, “We are pleased with the successful IPO of Jabal REIF. The Fund garnered substantial interest and was oversubscribed shortly after the subscription commenced. It offers investors an attractive long-term return and potential asset appreciation.”

He added, “The Fund provides a unique opportunity for investors to participate in a professionally managed, diversified income-generating real estate portfolio in Oman, with the potential for future growth. We extend our gratitude to the FSA and MSX for facilitating the successful launch of the Fund. We believe that Jabal REIF will positively impact the overall Oman real estate market by enhancing market transparency and liquidity.”

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