MUSCAT: Asyad Group, Oman’s global integrated logistics provider, is offering four land plots belonging to its wholly-owned subsidiary Oman Post for private investment and redevelopment into mixed-use commercial or real estate complexes.
The four sites – distributed across Muscat and Al Buraimi governorates – are the latest in a series of land plots housing post offices that are identified for private investment under the government’s Public-Private-Partnership (PPP) framework.
Under this arrangement, successful private developers are granted a concession from the Omani government, represented by the Ministry of Finance, to develop the land plot on a Design, Build, Finance, Operate and Transfer (DBFOT) basis, typically against a 25-year usufruct agreement. In return, the developer commits to constructing a post office complex along with other related facilities per specs stipulated by the government.
For its part, the developer can invest in mixed-use commercial facilities that can be offered on lease or rent with the objective of recouping its initial investment and other upfront costs.
According to Asyad Group, three of the sites are located in Muscat Governorate. It includes a 521 m2 site at Sabbarah in the commercial area of Souq Al Seeb in the Wilayat of Al Seeb. Also on offer is a 1,593 m2 plot in Hay Al Mina located on the main road leading to Mina Sultan Qaboos and close to Muttrah Souq. In the Wilayat of Qurayyat, Asyad has identified a 2,029 m2 plot at Shahbari near Muscat Municipality’s Qurayyat Office.
First unveiled in 2018, Asyad Group’s initiative has garnered significant success in tapping private sector investment in the development of land holdings belonging to Oman Post under the PPP model.
The Group and its subsidiaries hold sizable land banks in different parts of the country, some of which are located in prime locations. By roping in private investment, wholly state-owned Asyad Group - part of Oman Investment Authority (OIA) – says it is keen to generate an additional source of revenue from the commercial development of its properties, thereby reducing its dependence on the Ministry of Finance (MOF).
Under the DBFOT model, the selected developer is granted sub-usufruct rights to invest in a mixed use development that includes commercial and residential components, hotels, public facilities, and retail shops, offices and medical centres.
The investor will also be responsible for the master planning, design, build, finance, operation and maintenance of the entire development for a period of 25 years, upon the completion of which, all of the assets will transfer to Oman Post. The agreement provides for redeveloping existing Oman Post locations into modern post offices complemented by quality retail outlets.
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