MUSCAT: Oman REIT, the first publicly listed real estate investment fund in the Sultanate of Oman, disclosed to the Muscat Stock Exchange on Wednesday the acquisition of a new portfolio of seven warehouses located in the Rusayl Industrial City. This strategic investment, valued at RO 5,931,636, is an integral part of Oman REIT's ongoing efforts to expand its portfolio and deliver enhanced value to its investors.
The acquisition is comprised of a cash consideration of RO 4,152,145, financed through existing credit facilities with Muzn Islamic – National Bank of Oman. The remaining RO 1,779,491 will be settled through a private placement of units in Oman REIT at 100 baiza per unit. This method of financing not only underscores the financial stability of Oman REIT but also reflects its strategic approach to leveraging existing resources for expansion, it said.
The newly acquired warehouses are multi-tenanted by prominent commercial entities in the local market, boasting an unexpired lease term exceeding four years. This aligns with Oman REIT’s strategy of stabilizing future returns, enhancing the overall portfolio's Weighted Average Unexpired Lease Term (WAULT), and diversifying its asset composition. By securing long-term leases with reputable tenants, Oman REIT ensures a stable income stream, which is crucial for delivering consistent returns to investors.
Oman REIT's commitment to maximizing returns and delivering long-term value to its investors is evident in this acquisition. The move marks a significant milestone in the company's growth journey, reflecting its strategic approach to expanding and diversifying its portfolio. By adhering to a well-defined business plan, Oman REIT continues to enhance the risk-adjusted returns of its real estate investment trust, ensuring that investor interests are always at the forefront.
An Extraordinary General Meeting (EGM) will be convened shortly to discuss the issuance of the new units. This meeting will provide an opportunity for shareholders to gain deeper insights into the acquisition and its implications for the future growth of Oman REIT.
Oman REIT has been a pioneering force in the real estate investment sector in Oman. Listed on the Muscat Stock Exchange in February 2021, it is the first diversified multi-asset Real Estate Investment Trust (REIT) in the country. Seeded by the Ministry of Defense Pension Fund, Oman REIT manages over RO 63 million. Its portfolio includes prominent properties such as KOM-4, Oasis Mall, Rusayl Industrial Park, Nesto Wadi Kabir, Qurum Office Building, and Misfah Warehouse. This diverse asset base underscores the trust's robust investment strategy and its ability to adapt to market demands while ensuring steady growth.
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