The Emirates Real Estate Fund, managed by the National Investor, has recently closed its first major investment in Abu Dhabi.
The fund acquired, in a Shariaa compliant manner, the future cash flows of 36 Abu Dhabi properties developed by Al-Ahmadain General Contracting (Al-Ahmadain). This transaction is one of the first United Arab Emirates (UAE) Islamic real estate cash flow securitizations and totaled 23 million Emirati dirhams ($6.2 million).
Al-Ahmadain is a leading residential developer in Abu Dhabi specializing in the Istithmar concept whereby a developer leases land from its owner, develops the properties and rents them during the lease period prior to returning the properties to their owner at the end of the lease period.
The National Investor decided to purchase the future cashflows generated by the properties in the portfolio of Al-Ahmadain. "Al-Ahmadain has the best Istithmar track record and the largest and highest quality portfolio of properties in Abu Dhabi," said Chief Executive Officer of the National Investor, Karim El Solh.
The Emirates Real Estate Fund invests in income producing properties in the UAE to achieve above average returns at below market risk. The fund, with its low risk investment profile, should appeal to risk-averse investors, who in the prevailing low deposit interest environment, are looking for a respectable current income and higher returns. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
