Izdihar Real Estate Fund (Izdihar), managed by Bank Muscat, has announced the acquisition of a prime property in the Wilayat of Buraimi. The Buraimi Mall is the only mall of its kind in Buraimi offering a contemporary shopping experience. The tenants of the mall include a three screen cineplex, 50 stores and a large hypermarket. It is spread over an area of over 30,000 sqm and has over 760 car parks, positioning it as an easily accessible retail destination, according to a bank release.
“Izdihar’s investments are backed by long-term leases, sound property management and attractive locations. This allows the fund to successfully de-risk the current challenging financing and market environments. I am confident that this transaction marks another successful close for the fund in a short timeline and I compliment the Private Equity and Asset Management team at Bank Muscat for delivering on investor expectations,” said Sulaiman Al Yahyai, Chairman of Izdihar’s Fund Management.
Izdihar is the first real estate investment trust (REIT) type of fund established in Oman, which offers attractive yield to investors. The fund has distributed an annualised dividend of more than 10 per cent since 2016, far in excess of the 7-8 per cent per annum initial dividend target. Owing to its outstanding performance, the existing investors subscribed to a rights issue in August 2017 making Izdihar among the largest funds in Oman. The fund has already made investments in excess of $90 million and is targeting additional investments in excess of $150 million in the next one to two years.
“We thank the investors for their continuous support and commend the fund management team for closing this landmark transaction in a difficult market. We remain committed to the development of the local real estate market and the capital markets and look forward to making Izdihar the first “Billion Dollar Fund of Oman,” added Abdullah Al Hinai, General Manager – Wholesale Banking of Bank Muscat.