USD100million Fund to Promote Housing

USD100million Fund to Promote Housing

Corporate Communication official representative of GLOREI has announced that Global Omani Development & Investment Company SAOC (GLOREI, a leading developer in Oman and Capitas Group International (CGI), a leading Jeddah–based management and advisory firm providing financial solutions for the housing and SME sectors, today announced that they had entered into a series of agreements to establish a USD 100 million fund to promote middle income housing developments in the Sultanate of Oman.

GLOREI was formed in March 2008 and it s Oman’s largest private real estate development company based in Muscat.  GLOREI’s real estate developments include industrial, commercial, hospitality, mix use, retail, and residential projects. The architecture and design of its projects vary and have contemporary, traditional or a mix of both elements.  GLOREI’s business venture and investment arm taps into a host of carefully selected real estate asset types within the Sultanate.

CGI is a subsidiary of the Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank Group (IDBG).  The company’s mandate is to develop housing and SME sector platforms by working with both private and public sector institutions within the OIC (Organization of the Islamic Conference). CGI’s Real Estate Management Advisory Team (REMA) emphasizes a pragmatic approach based on extensive experience launching and managing multiple real estate sector platforms and working with regulators, government institutions, and the private sector.

Under agreements entered into by the companies, GLOREI will be the founding investor and key sponsor of the fund and CGI will provide product development, administrative and lead advisory services to the fund. Using an innovative mezzanine structure, the fund will target middle market housing sector in Oman by investing in the construction of new housing projects.  The target fund size is USD 100million.

CGI’s interest in working in the Omani housing sector is based on the Sultanate’s growing need for housing, especially among customers in the medium and lower income segments.  Mr. Naveed Siddiqui, CEO of Capitas Group International stated, “We are extremely excited to work with GLOREI on this innovative project.  Oman needs housing solutions that cater to a young, rapidly growing population. I am confident that the expertise and entrepreneurial mindset of our Real Estate Management & Advisory (‘REMA’) team will help to launch a platform and product that is specifically catered to support the development of additional housing supply in the Sultanate.”

Engineer Mohammed Al-Ghassani, CEO of GLOREI stated, “The launch of this fund is an integral part of the development plan that GLOREI has established for the midterm future.   Moreover it is in line with the company’s mission to enhance the community and contribute to the development of the nation by serving the needs of our growing mid-market segment.  In the end a project’s success comes down to proper execution and that is why we have chosen to work with a trusted partner in CGI to launch this fund. 

Oman’s GDP has been growing continuously since 2005 at an average of 6% annually. The real estate sector will benefit the government’s investment in tourism and industrial zones which will generate a need for additional housing. The GCC recently promised the Omani Government a grant of USD 10 billion to be released over the coming ten years for housing and infrastructure projects in the country.
 

GLOREI and CGI are planning for a press conference to be held at a later time to officially announce the establishment and launching of the Fund at the completion of all procedures.