RO 53 million sukuk to fund Muscat Grand Mall expansion
Tilal Development Company announces Oman’s first sukuk -By A Staff Reporter -
MUSCAT — Tilal Development Company, the Sultanate’s leading real estate firm that has been credited with the inception of the ground breaking Muscat Grand Mall project, has announced its intention to raise RO 53 million by way of the Islamic debt instrument, sukuk, which will be the first such issue in Oman in order to put into motion plans for expansion of the complex that houses Muscat Grand Mall.
Commenting on this historic announcement, Hassan Jaboub, General Manager of Tilal Development Company said, “These are very exciting times for us. The Muscat Grand Mall, our finest venture has seen unparalleled success and it is only natural for us to move forward the expansion way.”
Discussing the instrument, Jaboub commented, “67,000 square metres of shopping area at Muscat Grand Mall are fully leased and already operational. Additionally, owing to demand and market interest in our project, the expansion was an effortless decision. Towards the same, we are also glad to be pioneering the sukuk market in Oman and hope that it will grow exponentially here from.”
Tilal Development Company is a special purpose vehicle (SPV) formed by Al Madina Group to execute real estate projects in the Sultanate. Since its inception, it has seen widespread success with regard to its commercial projects and residential ventures, building a strong reputation for itself within the development industry.
Owing to the heavy demand for retail space and the enormous response received from our Omani patrons, this growth has become crucial. Home to an array of new brands which have secured their first presence in Oman, the largest food court, a three screen cinema and more than 113 stores currently and aiming at 160 outlets shortly, it is no surprise that Muscat Grand Mall has become the lifestyle centre for residents in the Sultanate.
The mechanics of this funding raised from the sukuk issue will be advised by Amanie Advisory House of Oman, a specialist financial advisory firm active globally in the field of Islamic Finance. It will play a significant role in the expansion of the Muscat Grand Mall – which has proved to be the youngest and most dynamic of shopping precincts and commercial and residential developments in the country.
This announcement brings to sharp focus the phenomenal growth that Tilal Development Company has achieved in the past few years and provides a perspective for the way forward.
Tilal Development Co. SAOC is the first Omani SPV established to carry out one of the most prestigious and high magnitude real estate developments and was incorporated on November 4, 2006 to undertake the mixed used Tilal Complex project.