As­sets of Bank Mus­cat real es­tate fund up 74%

Izdi­har main­tained a div­i­dend of more than 10 per cent in its sec­ond year of op­er­a­tions, sig­nif­i­cantly above its tar­get of seven to eight per cent.

Times of Oman - - MARKET -

Times News Ser­vice

MUS­CAT: Bank Mus­cat Izdi­har Real Es­tate Fund (Izdi­har) con­cluded its sec­ond year of op­er­a­tions with im­pres­sive ac­com­plish­ments in both per­for­mance and growth.

The fund grew as­sets by 74 per cent reach­ing US$90 mil­lion and po­si­tioned it­self as one of the largest real es­tate funds in the re­gion. The fund main­tained a div­i­dend of more than 10 per cent in its sec­ond year of op­er­a­tions, sig­nif­i­cantly above its tar­get of seven to eight per cent.

Izdi­har grew its cap­i­tal by more than 100 per cent through a com­bi­na­tion of rights is­sue and pri­vate place­ment. The fund is well po­si­tioned to take its as­set base over $200 mil­lion on the ba­sis of ex­ist­ing cap­i­tal. The fund con­tin­ues to eval­u­ate in­vest­ments and has a strong in­vest­ment pipe­line. The aim is to be­come the first bil­lion-dollar real es­tate fund in the re­gion.

“Izdi­har is the first and only Oman-reg­is­tered real es­tate fund. We would like to see Izdi­har at the fore­front of cap­i­tal mar­kets, as well as real es­tate de­vel­op­ment. Izdi­har has the po­ten­tial to be­come the first bil­lion-dollar real es­tate fund of the Gulf Co­op­er­a­tion Coun­cil (GCC),” said Su­laiman Al Yahyai, Chair­man of the Izdi­har Fund Man­age­ment Board.

“The fund’s track record, as well as its strong fi­nan­cial re­sults have led to dou­bling of the ini­tial in­vest­ment com­mit­ments. I com­pli­ment and commend the team for this per­for­mance,” he added.

“We re­viewed more than $1 bil­lion po­ten­tial real es­tate as­sets in­vest­ment op­por­tu­ni­ties in 2017 and have a strong pipe­line of more than $250 mil­lion at an ad­vanced stage. The fund’s per­for­mance has been built on rig­or­ous and de­tailed due dili­gence pro­cesses,” said Ab­dul­lah Al Hi­nai, Gen­eral Man­ager, Whole­sale Bank­ing.

“We are proud to have been able to de­liver a per­for­mance that is ahead of ex­pec­ta­tions. We thank all our in­vestors and the CMA for their support,” he added.

The Izdi­har prop­erty port­fo­lio, con­sist­ing of mod­ern as­sets, is spread over 70,000 square me­tres of leasable area and is cur­rently fully leased with a weighted average lease term of more than 10 years.

The port­fo­lio was per­form­ing in line with the busi­ness plan and out­per­formed the mar­ket av­er­ages in terms of oc­cu­pancy and rental rates in 2017. This gave Izdi­har a pred­i­ca­ble, sus­tain­able and grow­ing in­come and re­in­forced its abil­ity to pay div­i­dends to in­vestors.

- Supplied pic­ture

Su­laiman Al Yahyai.

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