Global MENA Ijarah Real Estate Fund announces distribution of Dividend
Global Capital Management Limited, alternative investment funds arm of Global Investment House "Global" announced today that Global MENA Ijarah Real Estate Fund has declared a cash distribution of 6.5% making it a third quarterly dividend distribution to its investor.
Mr. Shailesh Dash, Managing Partner at Global Capital Management Limited said “Global MENA Ijarah Real Estate Fund which was launched as a close ended fund called for 40% of its committed capital in 2008. The capital was invested in two projects situated in Dubai and Kuwait”.
Commenting further on the performance of the Fund, Mr. Dash added, “The Fund generated stable cash flows from its two investments and distributed 8% cash dividend to its unit holders for the fourth quarter of 2008 and first quarter of 2009. The economic situation worsened during first half of 2009 due to continued recession and lack of economic activity with major emphasis on the real estate sector in the region. A number of projects were delayed, cancelled or scaled down which reflects lack of bank credit and inadequate liquidity in the system. During this period not many funds in the region have reported positive gains because of bad performance of underlying investments. Global MENA Ijarah Fund, being an income oriented Islamic fund decided to reward its unit holders with 6.5% cash dividend for the second quarter 2009. This will be Fund’s third distribution since its final closing in September 2008”.
Mr. Rakesh Patnaik, Partner and Head of Real Estate Funds at Global Capital Management commented, “The year 2009 continues to be challenging for the GCC and MENA regions. However, countries in the GCC are in a better position to tackle the crisis and are expected to stage a speedier recovery given their huge cash reserves accumulated over the years”.
Commenting further on the fund and its investments Mr. Patnaik added, “The market volatility currently being witnessed in the region has served to further reinforce our decision to adopt a wait and watch policy in the deployment of remaining capital of the Fund. The real estate team is closely monitoring the market situation and will make the second capital call at an appropriate time. The Fund will pursue strategy of investing in selective operating assets which can be acquired at attractive valuations as soon as the market shows signs of recovery.”
The real estate team manages about USD 500 million of real estate assets across Middle East and North Africa, China, India and Vietnam through its 4 real estate funds. The real estate team comprises of well qualified professionals with a cumulative work experience of over 150 years in varied asset classes. Performance of the real estate funds team has been widely recognized at different platforms through awards such as Best Islamic Real Estate Fund Manager conferred by IREF Summit, 2008 hosted by ICG in London.
