Musharaka REIT chairman expects better 2020/21 after vaccine rollout

Musharaka REIT Fund expects better performance in 2020/21, especially as the new COVID-19 vaccine will be deployed, Ibrahim Al-Assaf, Chairman of Musharaka REIT Fund & CEO of Musharaka Capital Company, told Argaam in an exclusive.

Recently, the COVID-19 pandemic had a “very minimal” impact on the fund, which was keen to offer its investors and tenants leasing discounts under the binding agreements signed between the two parties.

“Our assets demonstrated strong performance, when compared to the market,” Al-Assaf noted.

Musharaka REIT has recently acquired a self-storage warehouse in Dubai. The new acquisition offers a new concept in the Gulf region. The warehouse is the largest self-storage facility in the Middle East.

“Similar acquisitions will help us diversify our portfolio and move ahead with other properties going forward,” Al-Assaf added.

Musharaka REIT is looking forward, as part of its strategy, to acquire properties in line with Vision 2030.

Highlighting the benefits offered by REITs, Al-Assaf explained that the most important benefits are offered to real estate investors.

Today, the listing of REITs allowed beneficiaries and investors to easily invest in funds, whose management focuses on eying funds, selecting assets on a high technical basis, monitoring asset geographical and diversification, and also coordinating with tenants.

These REITs also offer investors an indicative market reading that help them take the right decision about exiting certain funds and investing in new ones.

This in turn contributes to enhancing the quality of real estate investments through REITs.

On the other hand, the funds listed in line with the existing governance and disclosure standards allowed fund managers to expand footprint, and easily engage in talks with banks to raise loans.

Moreover, the fund managers were able to enhance their governance, technical and accounting standards.

Elsewhere, Al-Assaf pointed out that Musharaka REIT had to develop its accounting and technical standards to meet investor and unit holder expectations.

“We had to provide better than expected transparency, calculation of NAV and unit value. This in turn contributed to enhancing governance and technical procedures in the company,” he explained.