Wednesday, Jun 29, 2016

Dubai

Mashreq in partnership with Arady Properties is launching what it says is the UAE’s first “qualified investor real estate fund” and to be registered in DIFC. The Sharia-compliant fund will acquire select, income generating, diversified assets across the GCC with a focus on the UAE.

The investment vehicle is structured as a six-year, close-ended fund, regulated by DFSA (Dubai Financial Services Authority). It will put up $300 million of equity paired with debt to acquire the chosen assets. Capital raising and a roadshow will commence in Q3-16, and will consist of three, $100 million tranches among a maximum of 50 investors.

The partnership was signed by John Iossifidis, Group Head of Corporate Investment Banking Group at Mashreq and Ali Hamad Lakhraim Al Zaabi, Chairman of Arady Properties.

According to John Iossifidis, Group Head of Corporate and Investment Banking at Mashreq, “This Fund will add a significant amount of product and investment diversity to the region’s real estate and asset management platforms.”

The Fund’s objective will be to provide returns to investors through acquisition of assets with substantial upside via active property management. “The current market conditions present an opportune time to acquire targeted assets in the UAE with many GCC investors having significant capital-seeking stable investments delivering optimal returns through robust management capabilities,” according to a statement issued by the financial institution.

Mashreq’s Real Estate Finance and Advisory team will act as an investment advisor along with Arady, whilst Mashreq Capital will act as the fund manager.

Arady Properties has regional experience in real estate private equity, asset management, and investment advisory. The partnership will bring “significant industry expertise, unparalleled market knowledge, access to lucrative assets and a plentiful investor base”.

Zain Qureshi, Head of Real Estate Finance and Advisory at Mashreq, said: “We believe this is an ideal time to launch such an investment product. We look forward to working with our partners and enhancing our contribution to the GCC real estate market. Other avenues and structures are currently being developed by the real estate finance and advisory team.”

Staff Report

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