With exciting developments in full swing, Omran, the master developer of the Madinat Al Irfan Urban Centre project in Muscat, has revealed that its initial Private Placement Memorandum (PPM) agreement has been a successful first stage of its public-private sector partnership approach.
The company has announced that two pension funds have invested a total of 20 per cent in the new Crowne Plaza property, which forms part of phase one of the Madinat Al Irfan Urban Centre.
The Public Authority for Social Insurance and the Sultan Special Force pension funds both demonstrated an interest in participation in phase one of Madinat Al Irfan, and have opted to invest, taking a total of 20 per cent of the purchase between them.
Scheduled for 2017, the new Crowne Plaza at the Oman Convention and Exhibition Centre (OCEC) was one of several assets offered for investment in response to private sector interest in involvement with phase one of the Madinat Al Irfan development.
Investment director, Public Authority of Social Insurance, Sheikh Ghasan Khamis Al Hashar remarked: “We had indicated an interest in investing in the major developments Omran and the Ministry of Tourism were planning, so the offer of an investment in the initial phase of Madinat Al Irfan was an attractive one. The investment proposition was low risk because Omran had done a lot of the development work already, including the award of contract and the financing, so this was a robust choice for us to participate in the flagship project.”
He added the Madinat Al Irfan Urban Centre is a milestone project for Oman, which will bring forth benefits for residents.
Meanwhile, also commenting was chief investment officer, Omran, Salah Bin Salim Al Ghazali: “This kind of public-private sector cooperation is vital when it comes to developments on the scale of Madinat Al Irfan. The breadth of what the project will offer residents and visitors alike will come to fruition through investment from both public and private sector organisations.”
He continued: “Omran has invested significantly in phase one of Al Irfan to create a robust foundation for growth of the site, providing low risk options for private sector investment.
“Omran has saved approximately $3.89 million on construction costs of the Crowne Plaza project to date. And since Madinat Al Irfan’s Mulkhiya (title deed) was recently transferred by the Oman Ministry of Tourism to Omran, the company has increased its use of Public-Private Partnerships (PPP) as a key approach in developing the project,” Al Ghazali concluded.