At a time when Knight Frank’s latest Global Residential Cities Index showed property prices in Dubai have fallen by more than nine percent over the past year, one Dubai-based real estate fund has reported a total annualised return of 12.5 percent for 2018 and is aiming to double in size and list on the stock market within the next few years.
Founded in 2018, the Manrre Real Estate Fund, managed by Dalma Capital, last month published results for its first year in operation. The fund, which currently manages a AED215 million ($58.54 million) portfolio, reported a total annualised return of 12.5 percent, compared to an average decline of 27 percent among its benchmarked peers within the real estate fund market.
Meher Anand, a director at the fund, said a number of factors had led to its success last year. “We only acquire assets that yield between 11-12 percent return. It is a very selective process of acquiring assets and we focused on logistics and industrial real estate,” she said. More