Opening to subscription of the IPO RO23mn of Pearl REIF

The Pearl REIF has forecast an average yield of distributable profits of 9.2%, which compares favorably with other yield instruments in Oman such as term deposits, perpetual bonds or sukuk.

Muscat – The Pearl Real Estate Investment Fund (The Pearl REIF), Oman’s largest sharia-complaint fund, announced the opening of its initial public offering (IPO) on Sunday. Subscription for the IPO will be open from October 16 to October 30.

The Pearl REIF offers a unique opportunity for retail and institutional investors to invest in a Shariah-compliant real estate investment fund.

Oman Investment Authority (OIA) and Omantel are the promoters of The Pearl REIF. Sohar International is the investment manager and also the issue manager for the IPO.

The Pear REIF held a press conference at Omantel headquarters on Sunday, attended by senior officials from the fund, Omantel, OIA and Sohar International Bank.

The fund promoters will sell 49% of their stake through the IPO. Accordingly, The Pearl REIF is offering 208,137,400 units at a price of 112 bz per offering unit (including the offering price of 110 bz and the offering fee of 2 bz per unit) for subscription. The initial public offering size of The Pear REIF is RO23.3 million.

The Pearl REIF IPO is a unique opportunity for common investors to benefit from income-generating real estate investments. Historically, real estate investments were only attractive to large investors due to the size and scale of these investments. However, with The Pearl REIF, common investors have the same opportunity.

Speaking at the press conference, Wahbi Sulaiman al Riyami, Chairman of Pearl REIF (representing Omantel), said: “The Pearl REIF is a rare and compelling opportunity for investors considering real estate to diversify their portfolios. The strong developers and well-known tenants of these properties will demonstrate the strength of the supply. I am convinced that retail investors will see the potential of this offer positively. »

Originally, The Pearl REIF had two renowned tenants: Omantel and Lulu Group. Omantel has already confirmed a definitive agreement with The Pearl REIF for the sale-leaseback of its iconic headquarters located in Madinat Al Irfan. Lulu Hypermarket Salalah also has a long-term rental agreement for the property.

Aown Abbas al Bahrani, Vice President of The Pearl REIF and Director of Public Markets at OIA, said: “The IPO of The Pearl REIF is underpinned by the strength of the experience and expertise of the management body of the fund, the investment manager and the issue managers. We are confident that public investors will take advantage of this unique opportunity.”

The Pearl REIF has forecast an average yield of distributable profits of 9.2%, which compares favorably with other yield instruments in Oman such as term deposits, perpetual bonds or sukuk.

The fund appointed a collection syndicate made up of leading banks and brokerage firms that would accept IPO application forms electronically.

All applicants must have an account and investor number with Muscat Clearing & Depository Company (MCD). Any applicant can apply for an investor number and open an account by completing the MCD application forms. This can be obtained from the MCD or its website at www.mcd.gov.om, or from brokerage firms approved by the Capital Market Authority.