Tuesday, Mar 04, 2014
Manama: Al Salam Bank Bahrain (ASBB) announced the launch of Al Salam Asia REIT Fund, the worlds first Asian REIT fund that invests along Sharia.
ASBB, an Islamic bank in Bahrain, will be the sponsor and seed investor for the Fund. The Sharia-compliant fund will be managed by B&I Capital AG, a pioneer in Asian REIT investments.
The funds portfolio will consist of 15 to 35 positions, diversified through active country and sub-sector allocation within the Asian REIT asset class. Each position will be equally-weighted, rebalanced and reviewed as part of the risk management process.
A REIT is a listed real estate investment trust that enjoys tax privileges and allows investors to have access to multi-class real estate properties.
Deputy CEO of ASBB, Dr Anwar Khalifa Al Sada said that the goal of the Fund is to give investors a long-term, superior risk-adjusted total return through a combination of high, stable, and growing dividends as well as a significant opportunity for capital appreciation.
The Fund aims to deliver benefits of diversified real estate ownership in Asia while avoiding many of the pitfalls of holding physical property and real estate developer equities, Dr Al Sada said.
Historically, REITs have lower volatility, superior returns and low correlation compared to equities and can provide some hedge against inflation, Talal Abdul Aziz Al Mulla, Head of Investment at ASBB said. The strong demographics and growth potential in Asia have resulted in Asian REITs providing a return of 12% higher than developed country REITs, over the last 10 years. We believe that Al Salam Asia REIT Fund will provide an optimum investment solution for accessing the growing Asian real estate market in a diversified and a Sharia-compliant approach.
The fund manager for Al Salam Asia REIT Fund, B&I Capital, has over 50 years of combined experience covering Asian markets, and can draw on several market cycles of experience. B&I are headquartered in Zurich, with presence in Singapore to support research, fund management and growth.
We are excited to be able to offer such a unique product to investors and proud to have an innovative partner in ASBB. We believe Asian REIT risk-adjusted returns will continue to be superior to other asset classes. Demographics and growth combined with pro-REIT regulation in many Asian countries will continue to support the demand for products like this one, Christian Bernasconi, Managing Partner for B&I Capital said.
Staff Report
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