Mayfair Wealth Management, a Cayman Island-based investment advisor, has launched a $50 million, Shariah-compliant real estate fund focused on profiting from falling residential prices in the United Arab Emirates.
The fund, Real Estate Musharakah Notes, aims to provide investors with a return of between 12 percent and 15 percent by buying “strategically sourced undervalued properties” across the UAE.
The vehicle will remain open for subscription until 31 August.
Mayfair Wealth Management said it would mitigate its risk by investing in the properties of various developers, locations and type of units. It also said it would invest in properties that are recommended by E-valuations Chartered Surveyors, a Dubai-based valuation firm certified by the Royal Institute of Chartered Surveyors and Mayfair International, a property consultancy firm based in London.
“Although the investment climate in the UAE has seen considerable changes in recent months as a result of the global economic crisis, we have identified a significant opportunity that stems from the slowdown in the UAE property market – one that will breathe new life to undervalued but potential-laden projects in the country,” Amani Choudhry, chief executive officer of Mayfair Wealth Management, said in a statement. “The present market climate provides an excellent opportunity to acquire properties at benchmark prices, which lay the groundwork for the success of this Shariah-compliant growth investment.”
She said the fund would take advantage of a drop in value of Dubai residential prices, for example, of more than 34 percent, on average, since their peak in 2008.
Mayfair Wealth Management made the headlines last month when the firm launched Ameerah, a unit it characterised as the “first truly bespoke wealth management service targeting female investors in the Middle East”. The Ameerah division offers Shariah-compliant wealth management services, as well as services including advice on asset classes including bonds, equities, foreign exchange and real estate.