UAE de­vel­oper inks AED 200m deal with Oman-based REIT

NEW AS­SET CLASS: Izdi­har, the first real es­tate in­vest­ment trust (REIT) type of fund es­tab­lished in Oman, has in­vested about $140 mil­lion

Oman Daily Observer - - OMANINTERNATIONAL - BUSI­NESS RE­PORTER MUS­CAT, OCT 13

Dubai-based Bing­hatti De­vel­op­ers, one of the lead­ing real es­tate de­vel­op­ment com­pa­nies in the UAE, signed its first sales agree­ment with Izdi­har Real Es­tate Fund, which is man­aged by Bank Mus­cat. The AED 200 mil­lion agree­ment com­prises the ac­qui­si­tion of Bing­hatti Vista and Bing­hatti Sap­phires, two of the best res­i­den­tial prop­er­ties in Dubai Sil­i­con Oa­sis.

Lo­cated just off Sheikh Mo­hammed bin Zayed road, Bing­hatti Vista is an iconic 9 floors build­ing that high­lights Bing­hatti De­vel­op­ers’ sig­na­ture de­sign. Com­pleted last month, the build­ing com­prises 118 res­i­den­tial units in­clud­ing 72 stu­dios, 18 onebed­room, and 27 two-bed­room apart­ments, in ad­di­tion to a 1 three­bed­room apart­ment. Con­tain­ing a 105,815 sq ft leasable area, the prop­erty of­fers many mod­ern ameni­ties in­clud­ing a heat mon­i­tored swim­ming pool, health club, chil­dren’s play area, a multi-pur­pose hall, rooftop pub­lic area, 3 floors of cov­ered park­ing, in ad­di­tion to an owner’s of­fice.

The sec­ond prop­erty ac­quired by Izdi­har Real Es­tate Fund is Bing­hatti Sap­phires, a 10 floors res­i­den­tial build­ing which in­cludes 60 stu­dios, 29 one-bed­room, 39 two-bed­room apart­ments in ad­di­tion to 1 three­bed­room apart­ment. The build­ing com­prises a leasable area of 113,920 sq. ft and of­fers dif­fer­ent con­tem­po­rary life­style ameni­ties such as a heat mon­i­tored swim­ming pool, health club, mul­ti­pur­pose hall, rooftop pub­lic area, cov­ered park­ing, and a chil­dren’s play area.

The ac­qui­si­tion agree­ment was signed by Muham­mad Bing­hatti, CEO & Head of Ar­chi­tec­ture at Bing­hatti Hold­ing, and Su­laiman al Yahyai, Chair­man of Izdi­har’s Fund Man­age­ment Board dur­ing a cer­e­mony that took place on Fri­day at Möven­pick Jumeirah Beach Res­i­dences in Dubai.

On this oc­ca­sion, Muham­mad Bing­hatti, CEO & Head of Ar­chi­tec­ture at Bing­hatti Hold­ing, com­mented: “We had a very good ex­pe­ri­ence of work­ing with Izdi­har Real Es­tate fund and we are look­ing for­ward to close more deals with them in the fu­ture. We’ve wit­nessed a lot of in­ter­est in our build­ings from in­sti­tu­tional in­vestors look­ing for sus­tain­able and long-term rental re­turns, and to­day’s mile­stone is the best tes­ta­ment to that.”

Su­laiman al Yahyai, Chair­man of Izdi­har’s Fund Man­age­ment Board, com­mented: “Izdi­har’s in­vest­ments are backed by strong as­set po­si­tions, long-term leases, sound prop­erty man­age­ment and at­trac­tive lo­ca­tions. 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 ex­ceed­ing in­vestor ex­pec­ta­tions.” He also added that “Among the var­i­ous op­por­tu­ni­ties in Dubai, we liked Bing­hatti De­vel­op­ers’ ar­chi­tec­ture and mar­ket pulse. We are look­ing to close more trans­ac­tions in the re­gion within the next few months”.

Izdi­har is the first real es­tate in­vest­ment trust (REIT) type of fund es­tab­lished in Oman, which of­fers at­trac­tive yields to in­vestors. The Fund has dis­trib­uted an an­nu­alised div­i­dend of more than 10 per cent since its in­cep­tion in De­cem­ber 2015. The Fund has in­vested about $140 mil­lion and it is tar­get­ing ad­di­tional in­vest­ments of about $250 mil­lion.

Ab­dul­lah al Hinai, Gen­eral Man­ager — Whole­sale Bank­ing of Bank Mus­cat, said: “We would like to thank the in­vestors for their con­tin­u­ous sup­port, to wel­come Bing­hatti Hold­ing as a part­ner, and com­mend the Fund man­age­ment team for clos­ing this mo­men­tous trans­ac­tion.”

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