A new 'options and derivatives' plan is set to be introduced in to the UAE real estate sector by Rijas Group, a diversified group from Pakistan.
"We are creating financial options vehicle in the UAE real estate market in the same manner options are traded in the stock markets all over the world,” Kashif Shahzad, Head of Rijas Investments, speaking to Khaleej Times.
“Rijas Options Fund 1 will comprise commercial office properties worth Dh70 million and will be available for sale on an option call, which is some thing new to this market," he added.
"Our fund's strategy is to acquire assets paid in full and liquidate at a future price with a ten per cent down payment at a target return of 70 per cent within a year. We believe in short term intrinsic value of commercial portfolios and expect capital gains of 40 per cent in commercial properties which are near to completion," he pointed out.
Investors who will trade portfolios with 'option call' create an opportunity to capitalise on maximum returns with minimum investment, he adds.
Rijas group invests in UAE and regional real estate to generate returns, primarily through capital gain, by acquisition, development, management and sale of real estate related investments. The Lahore-based group has ventured into textiles, retail and investments presently has offices in Pakistan, New York and Dubai.
