Al-Gharaballi: GCC Real Estate Fund concludes its third real estate acquisition in the Sultanate Of Oman

The fund has recently acquired a 18.7 thousand sqm plot in Qurum area in Muscat. The investors' equity was USD3.2 million from a total of USD16.8 million.

Mr. Sameer A. Al-Gharaballi, Executive Vice President at Global said that this investment provides the fund with opportunity to participate in a well-positioned land with the objective of developing a residential community, adding that the plot is in a main location with a total size of 39,998 sqm.

He pointed out that this investment is a joint venture with the Fund Advisor, Alargan Int'l Real Estate Company. The total value of the investment is USD10.9 million, including investor's equity of USD 1.5 million and the remaining amount will be financed in accordance with the Shariah principles.

Mr. Al-Gharaballi stated that the projected return on equity on the investment is approximately 16%, and the construction period of the development is set to be 18 months.

He followed by saying that the project will consist of 100 residential units in an area with a strong growing demand. The overall development contains complimentary components of residential units, landscaping, roads and a mosque.

The project is compromising a combination of 100 villas and townhouses with a built up area of units ranging between 182 sqm to 315 sqm, each will be sold at an average price of Omani Rials 47,100 (OMR) (apprx. KD30,400) generally to local Omani families.

The construction works were initiated in February 2006. Additionally, the sales of the units have commenced and will continue throughout the construction phase of the project.

The land is located in Al-Hail south Wilayat Al-Seeb, a rapidly developing residential area. The current developments within the area are mixed profile of good to average villas, as well as proposed residential developments underway.

Al-Gharaballi affirmed that the fund aims to take advantage of the current boom in the Real Estate and the great demand for houses in the GCC markets, therefore, the fund is in the process of an extensive due diligence process of other development opportunities in Sar in Kingdom of Bahrain.