Go Wealthy - 26/4/2006

Dubai investment bank, Emirates Financial Services (EFS) has launched a $20.4 million (Dh75 million) real estate fund that will invest in profitable short-term opportunities in the UAE's surging property sector. EFS, a unit of Emirates Bank International, said the UAE Real Estate Arbitrage and Trading Fund is managed by a unit of Investment Boutique, a partner of Better Homes, the largest estate agency in the UAE.

Called Carnelian I after a semi-precious stone, the fund is aiming at annual gains of 20 per cent by investing in short-term opportunities in UAE real estate industry.The duration of the fund is 30 months with an option to extend for two 12-month periods to provide an orderly liquidation of assets, should the market shift.The fund targets superior returns by fusing top-level market data and expertise with an investment strategy that focuses on distressed assets, investment repositioning, legislative changes, yield plays, mis-pricing, and infrastructure plays.

EFS chief executive Suresh Kumar stated the fund was a first of its kind in the UAE and will combine the fund manager's international execution and expertise with Better Homes local market intelligence and industry reach. “This real estate investment fund represents one of the best growth opportunities and a unique diversification opportunity."Heather Wipperman, director of Investment Boutique Investment Manager, said economic growth and corresponding real estate related activity in the region over the past five years have been fuelled by sound demand fundamentals.