GIH to raise luxury apartments in Dubai

The Kuwait-based investor’s latest development follows on the debut earlier this year of its $500m Shariah-compliant real estate vehicle, Global GCC Real Estate Fund II.

Kuwait-based Global Investment House has partnered with Kaizen Developments to develop an AED715 million ($195 million; €145 million) residential complex in Dubai in the United Arab Emirates.

The development, called the Equinox Residences, is located on the Palm Jebel Ali island. Once completed, it is expected to total 21 floors of residential space.

GIH closed its $75 million Shariah-compliant fund, Global MENA Ijarah Real Estate Fund, in August this year. It also launched the Global GCC Real Estate Fund II in July. The $500 million vehicle targets investments in the Gulf Cooperation Council (GCC) region. The fund is its second property vehicle targeting the GCC region.

The Kuwaiti investment firm also revealed this week its GCC Real Estate Fund was on target to return approximately 60 percent of the vehicle’s capital by mid-October from its three real estate projects.

Shariah-compliant GCC Real Estate Fund was launched in 2005 to target the development and acquisition of middle-income residential properties in the GCC region. Rakesh Patnaik, GIH vice president and head of real estate funds, said in a statement the fund was expected to be fully liquidated with all capital and profits returned to investors by the fourth quarter of 2009.