The Pearl Real Estate Investment Fund (The Pearl REIF), Oman’s largest Shariah-compliant fund has announced the opening of its initial Public Offering (IPO). The subscription will be open from 16 October to 30 October 2022.
Oman Investment Authority (OIA) and its subsidiary, Omantel are the promoters of The Pearl REIF. Sohar International is the Investment Manager and also the Issue Manager for the IPO.
The promoters of the Fund will divest 49 per cent of their stake through the IPO. Accordingly, the Fund is offering 208,137,400 Offer Units at a price of 112 Baizas per Offer Unit (including the Offer Price of 110 Baiza and Offer Expenses of 2 Baiza per Offer Unit) for the subscription.
The Pearl REIF IPO is a unique opportunity for common investors to benefit from income-generating real estate investments. Historically, they were attractive only to large investors due to the size and scale of such investments. However, with The Pearl REIF, common investors have the same opportunity.
Highlighting the offer, Mr. Wahbi Sulaiman Al Riyami, the Chairman of Pearl REIF (representing Omantel) said: “The Pearl REIF is a compelling and rare opportunity for investors considering real estate to diversify their portfolios. The strong promoters and marquee tenants of these properties will demonstrate the strength of the offering. I am confident that retail investors will see the potential of this offering positively.”
At initiation, The Pearl REIF has two marquee tenants: Omantel and Lulu Group. Omantel has already confirmed a definitive agreement with The Pearl REIF for the sale and leaseback of its iconic headquarters building located in Madinat Al Irfan. Lulu Hypermarket Salalah has also a long-term lease agreement for the property.
Aown Abbas Al Bahrani, the Deputy Chairman of the Pearl REIF and Director of Public Markets at OIA, said: “The IPO of Pearl REIF is underpinned by the strength of the experience and expertise of the fund management body, the investment manager and the issue managers. We are confident that the public investors will utilise this unique opportunity.”
The Pearl REIF has projected an Average Distributable Profit Yield of 9.2 per cent, which compares favourably to other yield instruments in Oman such as term deposits, perpetual bonds or Sukuk.
The Pearl REIF has appointed a collection syndicate consisting of banks and prominent brokerage firms who would be accepting application forms for the IPO through electronic channels. All applicants must have an account and Investor Number with Muscat Clearing & Depository (MCD).
Any applicant may apply to obtain an Investor Number and open an account by completing the MCD application forms. This may be obtained from the MCD or its website at www.mcd.gov.om, or from brokerage companies licensed by the CMA.
More information on The Pearl REIF IPO including the Prospectus, Investor Information Booklet and other details for the Fund’s objectives, strategies and fund management body are available on the website at www.pearlreif.com.
