The CEO of Emirates Islamic Bank Ebrahim Fayez Al Shamsi was pleased to announce that the Board of Directors of Emirates Real Estate Fund approved a dividend of 35cents per share. The dividend applies to all income class shareholders in the register at the close of business on December 30, 2005 and was declared after a six-month period of successful trading. The fund was launched in June 2005 at a net asset value of $10 per share.
The fund benefits from both income and capital gains through direct property investment. Investors in accumulation shares continue to benefit from the re-investment of their income, with a net asset value as at 31st December of $10.69 per share.
The fund has doubled in size since launch with assets under management exceeding $115m, with nine properties reflected in the portfolio representing both commercial and residential sectors to investors.
“The Emirates Real Estate Fund is committed to delivering value to investors by investing in real estate with strong capital and income growth opportunities. The dividend is comfortably above the targeted rental income distribution of a minimum of 6% per annum to the Fund’s investors” said Emad Aldin Sadek from Emirates Islamic Bank. “Our ability to allocate and invest capital efficiently and strategically in real property assets has resulted in the Fund generating attractive returns within a short period of time. The Fund is growing phenomenally as investors are seeking alternative sources of investment returns and particularly wish to gain exposure to a diversified property portfolio”.
With the phenomenal growth already experienced in the local property markets, the Investment Advisor continues to source attractive opportunities that will provide benefit to investors on an ongoing basis. A diversified approach with prudent asset selection is key to the overall investment strategy.
The Emirates Real Estate Fund is a Jersey registered and regulated Fund that aims to achieve high-yielding rental income and medium to long term capital growth by investing in a diversified portfolio of residential and commercial properties. The Fund focuses predominantly on real property assets throughout the UAE, whilst retaining the flexibility to invest in markets outside of the UAE. Subscriptions and redemptions are on a monthly basis and investors have the option to invest in income distributing or capital accumulation shares. Fund assets and transactions are Shari’a compliant, as advised by the Emirates Islamic Bank Shari’a Board. The fund is the first open-ended, Sharia compliant, direct property fund available to investors.
