Matrix Property Middle East, a new venture of UK-based financial services business, is launching a property fund with approximately $300 million (Dh1.1 billion) in equity, a top company executive said.
"We are currently in the process of registering the new property fund management company at the Qatar Financial Centre, and we expect to be one of the first to be fully regulated. We see this as a very important selling point as we look to attract GCC, UK and European investors," Will Hean, General Manager & Investment Director, Matrix Property Middle East, told Emirates Business.
"The fund will have approximately $300m of equity and we would expect to begin acquisition towards the second half of this year. We believe there are good opportunities to acquire high yielding income producing assets over the next 12 months that will offer good capital growth."
Matrix Property ME was formed following the acquisition by Matrix of a majority stake in the former Kenmore Middle East business, bought out by former board director Andrew White in December. It will be led by Andrew White together with Hean as General Manager and Investment Director, and will have operations in the UAE and Qatar. Matrix has also set up a joint venture agreement with ME Alignment, a Qatar-based real estate development and investment company owned by members of the Al Attiya Family.
Asked how much the fund will invest in Saudi Arabia, Qatar and UAE markets, Hean said: "We will be looking to provide the right blend between these three core markets, which offer a variety of growth opportunities."
According to the company, Saudi Arabia provides a major demographic growth story with circa 70 per cent of population under the age of 20. Qatar is seeing major gross domestic product growth as a result of oil and gas revenue funded diversification.
"In the UAE, you have both the regional business hub growth story in specific sub sectors in Dubai, and further opportunities in Abu Dhabi as tenants relocate to quality new developments and the government seeks to diversify the economy," he said.
Hean said the first fund will be a GCC-wide fund, but the UAE will constitute a major element of this.
In terms of future funds, Matrix may consider a wider Mena fund in due course, as well a selection of asset or sector specific funds, which could be UAE-focused.
"For example, we see significant opportunities in the logistics and budget hotel sectors and will look to use our regional and international experience, as well as our joint venture partnerships to capitalise on these."
Hean said: "Looking at the UAE in particular, we will look to invest in a mixture of well let residential and office projects, with quality covenants. We will also be focussing on logistics and industrial investments in Abu Dhabi, Al Ain and Dubai.
By Parag Deulgaonkar
© Emirates Business 24/7 2010
