In a move that strengthens the company’s real estate division’s fast growing reputation, The National Investor, (TNI), the leading UAE investment and merchant banking firm, today announced the launch of its new AED100 million TNI Real Estate Active Fund (REAF) for the Middle East and North Africa region.
Open to UAE and GCC based institutional and individual investors, REAF will utilize TNI’s securities expertise and direct real estate experience. The open ended Fund comprises the following portfolio – 60-70% to focus on real estate companies with a minimum market capitalisation of AED300 million; 10-20% on real estate IPOs that are taking place in the next 12 months and 5-15% of its assets in debt instruments of MENA real estate companies or cash management products.
Initial investment will target the UAE, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia and Tunisia. The minimum investment for institutions is 500,000 units with additional increments of 50,000 units while individual investors must apply for 100,000 units with increments of 10,000 units. The initial offering price is AED10 per unit.
Commenting on the decision to focus on the MENA region, Mr. Emile Habib, Managing Director, Heal of Real Estate Division, The National Investor, said: “The value of the region’s GDP is approximately US$2 trillion or 4.3% of global GDP and growing. Its positive economic fundamentals are supported by higher oil revenues, expansionary fiscal policies, low interest rates and improving public governance. This is providing strong benefits by encouraging economic growth, trade, investment and job creation in the region. ‘
According to Mr. Habib, this is leading to huge growth for the real estate industry as it becomes the main driver of the region’s economies. “Liquidity is probably at a near and all time high in the real estate market, and capital still flows in from individual and institutional investors, domestic and foreign. Therefore, high current income will distinguish real estate companies in MENA.
New laws are being issued that allow MENA nationals the right to trade property to other MENA nationals and expatriates. We believe that these new ‘Free Hold’ laws will certainly have a positive impact on real estate industry and an enormous flow in real estate development projects.
”In addition, REAF provides investors with risk adjusted returns while providing stability for an investor’s portfolio, geographic diversification, liquidity of investments and transparency through monthly and quarterly updates. The Fund will give investors the diversification they need and expose them tour experienced managers who have helped to create a distinguished track record in real estate activities for TNI,” Mr. Habib added.
As Fund Managers, TNI has designed the Fund to concentrate on companies that are ‘principally engaged’ in the real estate industry and are listed on local or national securities markets across the MENA region – companies should derive at least 50% of its revenues or profits from the ownership, leasing, construction, management, development, financing or sale of residential, commercial or industrial real estate. In addition, the companies should have at least 50% of the value of its assets invested in residential, commercial or industrial real estate.
Since its launch at the beginning of the year, TNI’s real estate division has already secured a number of prestigious real estate investment banking mandates. These include the Al Surouh AED2.5 billion IPO, the largest in the history of the country, and the recently completed ALDAR Properties AED1.5 billion IPO. Today, TNI is the only investment bank in the UAE with a fully dedicated real estate investment banking team engaged in both real estate investment banking and asset management activities. REAF is the first in a series of announcements which are slated to be made by TNI’s real estate division.
About the National Investor:
The National Investor (TNI) is a leading UAE investment and advisory firm with a distinguished track record in investment banking, private equity, real estate and asset management. The Company is backed by over 80 UAE shareholders who come from the highest echelons of the business and political community. TNI is actively involved in investment banking, private equity, and asset management and is currently ranked as the leading arranger of public share offerings, having lead managed the largest number of public offerings in the UAE to date. For more information, please visit www.nationalinvestor.ae.
