Two pension funds invest 20% in new Crowne Plaza property

OMRAN, the master developer of the Madinat Al Irfan Urban Centre project in Muscat, has announced its initial Private Placement Memorandum (PPM) agreement for the development after a successful first stage of its public-private sector partnership approach. Two pension funds have invested a total of 20 percent in the new Crowne Plaza property, a 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 when offered the Crowne Plaza proposition both chose to invest, taking a total of 20 percent of the purchase between them. The Crowne Plaza at the Oman Convention and Exhibition Centre (OCEC), which is on track to open in 2017, 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. Sheikh Ghasan Khamis Al Hashar, Investment Director of Public Authority of Social Insurance, said: “We had indicated an interest in investing in the major developments Omran and the Ministry of Tourism was 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 in Oman, and one which will have far reaching benefits for residents. We saw this as a fantastic opportunity to become involved, and with the socio-economic benefits linked to the project, it aligned perfectly with our investment objectives.” Salah Bin Salim Al Ghazali, Chief Investment Officer, Omran, said: “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 organizations.” — SG