Dubai: Dubai Investments is to launch two funds — of around Dh1 billion apiece targeting health care and education — in partnership with Al Mal Capital.
“The first Fund which is likely to be launched sometime in October will focus on acquisition of real estate assets in the health care sector,” said Khalid Bin Kalban, Managing Director and CEOr of Dubai Investments. “The second Fund is expected to be launched six months later and will target assets in the education sector.
“The Funds will be structured to provide cash yield of around 8 per cent per annum with attractive IRRs (internal rate of returns) on exit.”
Dubai Investments will support these Funds with seed capital of up to 10 per cent.
The holding company has been expanding its interests outside of core real estate development, especially commercial real estate. These were done through selective deals in the education sector, and which it sees as a strategic investment-rich sector in the medium term.
Along with health care assets, the intention is to create longer term investment plays. Plus both are in sectors where there is still lots of unmet demand being created, especially in the newly emerging parts of the city.