Dubai: A new real estate investment trust has been launched in Dubai to target commercial and industrial property assets, with the promoters expecting to raise about Dh330 million. Minimum subscription has been set at $500,000 (Dh1.8 million).

The Manrre Reit is backed by the Palmon Group, which has been operating in the UAE for decades now. In the recent past, it has been extending its interests in commercial real estate.

Manrre currently holds a portfolio of 19 properties valued at Dh215 million in the UAE, with 62 per cent of this being logistics assets, 23 per cent in industrial, 8 per cent in offices, and 7 per cent on staff accommodation.

“Our vision is to list the fund on stock exchange within the next two years to generate maximum return for our investors,” said Manohar Lahori, Chairman of Palmon Group. “As we get closer to 2020, we believe this is the right time to launch Manrre.”

The fund will also accept investments “in-kind”, of those assets that fit in with the investment strategy. These will be accepted in exchange for shares. This will allow “in-kind investors enjoy added diversification and returns without the operational obligations of property management and maintenance,” the statement adds.

According to the promoters, the fund’s investment objectives include “generating a regular source of income for investors by way of distributing quarterly dividends and targeting 8 per cent annualised return”.