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Al Mal's real estate fund will list on DFM in January. The fund expects to mop up Dh500 million to invest in a range of real estate assets, and targets 7% annual return. Image Credit: Antonin Kelian Kallouche/Gulf News

Dubai: The asset management firm Al Mal Capital is all set to launch a real estate investment fund, having received regulator approval. The new entity, Al Mal Capital REIT, will list on Dubai Financial Market in January.

It intends to create a Dh500 million fund, and proceeds will be utilized to invest in a diversified portfolio of income-generating assets backed by long-term lease agreements. The fund's target is to attain annual returns of 7 per cent.

The Fund’s IPO subscription period - with a subscription price of Dh1 - is from November 8 to 19. Khalid Bin Kalban, Chairman of Al Mal Capital, said: “In the current environment, investors are looking for secure long-term attractive returns. Al Mal Capital is confident that the REIT and DFM listing will meet investors’ needs, providing a liquid vehicle to access a sector with strong fundamentals.”

The subscription will take place via FAB and DFM eIPO platform According to Sanjay Vig, Managing Director at Al Mal Capital, “Al Mal Capital REIT aims to provide investors with secure returns distributing at least 80 per cent of the fund’s net income, targeting Sharia-compliant assets. The aim is to acquire strategic single-let, anchor assets preferably in the healthcare and education sectors that provide stable income, low volatility and long-term capital appreciation.”