Dubai: Investments in projects under development will never exceed the 25 per cent mark, according to the Dubai real estate fund operator Al Mal Capital REIT. Nor will the fund breach the 25 per cent mark when it comes to picking up stakes in projects outside of the UAE.
These are the markers that Al Mal Capital REIT – which recently went through an IPO and the first in Dubai in three years – have set for itself. The fund will primarily invest in educational facilities, as well as in healthcare and industrial assets.
Decline and a pandemic
It has been a tumultuous two to three years for real estate focused funds in the UAE. The general downturn in the property market accelerated in the aftermath of COVID-19. But real estate sources say industrial assets – especially warehouses – have held up quite well, and this is what the funds will be banking on.
Al Mal Capital REIT pulled in Dh350 million from its IPO, with the units listed on DFM.
“The fund will distribute to unit holders by way of dividend at least 80 per cent of its audited realized net profit (does not include unrealized capital profit) each fiscal year,” it said in a statement.