Real estate investment trust seeks industrial assets in Dubai

dubai - Manrre Reit aims to raise Dh330 million ahead of listing on a stock exchange

A newly-launched real estate investment trust (Reit) is seeking logistics and industrial property assets to build its portfolio.

Launched by one of the UAE's diversified conglomerates, the Palmon Group, the Manrre Reit is open to qualified investors - institutional funds, single family offices and private investors - who have thirst for real estate, Meher Mirchandani, managing director of Palmon Group and director on the board for Manrre, told Khaleej Times. The minimum subscription into the Reit starts at $500,000.

"We have already put in 19 seed assets worth Dh215 million into the fund - they are rent-generating assets across the UAE, including properties in Business Bay, Jumeirah Lakes Towers, DIP and National Industrial Park," explained Meher.

The Reit's portfolio currently consists of 62 per cent investment in logistics assets, 23 per cent in industrial assets, 8 per cent in office assets and 7 per cent in staff accommodation.

Manrre aims to raise about Dh330 million to acquire additional rent-yielding assets. "There is a great opportunity in the market to acquire property at attractive prices," she added.

The promoters intend to list the Manrre Reit, regulated by the Dubai Financial Services Authority, on a Dubai stock exchange within the next two years.

The Reit is on the lookout for fully let out commercial properties that offer good yields and reputed, long-term tenants. "We are looking to invest between $5 million and $20 million in each asset that generates high yields," Meher informed.

"We are only looking at completed properties. However, we will also consider build-to-suit investments commissioned by the tenant as per their requirements," the senior executive said.

The investment vehicle will distribute quarterly dividends and target 8 per cent annualised return.

Manrre also accepts investments in-kind of assets in exchange for shares. Investors can offer income-generating assets to Manrre. This will give them immediate cash. This will allow in-kind investors to enjoy diversification and returns without the operational obligations of property management and maintenance.

- deepthi@khaleejtimes.com