Global Investment House "Global" announced today the conclusion of its second land acquisition in Al-Qurum district, capital area of Muscat, the Sultanate of Oman, as part of its GCC Real Estate Fund management strategy.
Mr. Sameer A. Al-Gharaballi, Executive Vice President at Global said that this investment provides the fund with opportunity to invest in a well-positioned land in a prime location with a total size of 18,706 sqm to be developed into a residential/commercial development.
He added that the residential part of the project will consist of 40 villas at an average built up area of 250 sqm, each will be sold at an average price of Omani Rials 100,000 (OMR) (apprx. KD75800) to upper income families and senior management expatriates. The commercial part of the project consists of 7670 sqm of leasable office and high-end retail brands spaces. In addition, under ground parking is available for the office and retail areas.
The commercial area is to be sold after one year of operation, Al-Gharaballi pointed.
This investment is a joint venture with the Fund Advisor, Alargan Int’l Real Estate Company. The total value of the investment is USD16.8 million, including investor’s equity of USD3.2 million and the remaining amount will be financed in accordance with the Shariah principles.
Mr. Al-Gharaballi pointed out that the projected return on equity on the investment is approximately 16%, and the construction period of the development is set to be two years.
Further to that, the fund still is in the process of an extensive due diligence process on other development opportunities in South Hail in Sultanate Oman and another development opportunity in Sar in Kingdom of Bahrain.
The property is located in Al-Qurum, an elite suburb of Oman. This is a traditional residential area in the central capital area in the last 30 years and is primarily noted by its association with the PDO Mina al-Fahad Complex. This has resulted in Al-Qurum being developed as one of the prime residential areas with a mix of expatriates and Omani citizens living in the area.
GCC Real Estate Fund aims to take advantage of the current boom in the Real Estate and the great demand for houses in the GCC markets.