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Mon, Feb 04, 2008, 18:34 GMT
Al Mazaya Holding establish USD100 million property fund in DIFC
WAM (Emirates News Agency)
Dubai, Feb 04th, 2008 (WAM): The property developer Al Mazaya Holding has established Al Mazaya Property Fund, with a seed capital of US D100 million, in alliance with Access Group, a strategic partner of Grant Thornton International, the world’s fifth largest financial consultant.

The first of its kind in DIFC, Al Mazaya Property Fund will invest in part of Al Mazaya’s property portfolio, and will seek other property opportunities in the commercial and residential sectors. The fund’ s strategy will focus on a mixture of long term capital appreciation through property assets and short term returns through investing in mature property assets, said a press release. Al Mazaya has a 10 percent equity interest from the total capital of the USD100 million fund. The company has employed a well trained and qualified team of professionals to manage the fund in accordance with DIFC rules and regulations. The company earlier signed an agreement with Access Group, whereas the latter will provide all the fund-related financial advices. Khalid Esbaitah, Executive Manager and CEO at Al Mazaya Holding said: ‘ Establishing Al Mazaya Property Fund has been in the planning from a long time, and we feel it is high time to launch it. This move supports Al Mazaya’ s position in the property market, and complements its mature property portfolio. ‘ The fund will explore significant property opportunities and invest in other real estate projects in both the commercial and residential sectors. It will invest in a part of Al Mazaya property portfolio and aims to invest in projects that cater to the needs of all segments of society’ , he added. Esbaitah clarified that the status of Al Mazaya as a DIFC- licensed and regulated licensed and regulated company has facilitate the establishment of the fund which is set to begin operation in March after completing the fund raising and registration in DFIC as per the applicable laws and regulations. Esbaitah affirmed that Al Mazaya Property Fund will add value to the company’s diverse investments, and will follow the success of all the projects and initiatives launched by them. licensed and regulated licensed and regulated The establishment of the fund comes at a time of increasing demand for housing units in Dubai. A recent report showed that Dubai will need 480 residential units by 2010 to accommodate a population of 5.2 million, while 30 million square meter of office space will be available in the market during the coming 5 years. The return on investment in residential property has reached 12pc, with an expected further 20pc to 30pc in property appreciation upon completion – a rate that is highly attractive compared to the long term investment in residential units worldwide. The real estate market in Dubai is based on real transactions between sellers and end users or long term investors, a situation which bodes well for the future of the sector in Dubai.

Article originally published by WAM (Emirates News Agency) 04-Feb-08
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