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Bank Muscat Izdihar Real Estate Fund delivers outstanding performance

MUSCAT, 16 May 2018

Bank Muscat Izdihar Real Estate Fund (Izdihar) concluded its second year of operations with impressive accomplishments on both performance and growth. The Fund grew its assets by 74% reaching USD 90 million and positioned itself as one of the largest real estate funds in the region. The Fund maintained a dividend of over 10% in its second year of operations, significantly above its target distribution of 7%-8%.

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

Sulaiman Al Yahyai, Chairman of Izdihar Fund Management Board, commented: “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 GCC. The Fund’s track record as well as its strong financial results have led to doubling the initial investment commitments of the Fund that is supporting Izdihar in achieving its next phase of growth. I compliment and commend the team for this performance.”

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

The Izdihar property portfolio consisting of modern assets is spread over 70,000 sqm of leasable area and is currently fully leased with a weighted average lease term of over 10 years. The portfolio is performing in line with the business plan and has outperformed the market averages in terms of occupancy and rental rates in 2017. This has allowed Izdihar to have predicable, sustainable and growing income and reinforces its ability to pay dividends to investors.