Eventus UAE Real Estate Fund
It is proposed to exceed US$75m for the closed end real estate fund and the term is 3 years. The fund has a 90% capital protection mechanism through the purchase of a zero coupon bond issued by Credit Suisse Bank.
The benchmark has been set at 15% growth per anum.
Subscriptions start from as little as $100,000 USD or more. More fund details including charges can be found in the downloable documents from this section of our website.
Investment Opportunity
Eventus UAE Real Estate Fund provides investors attractive returns through investments into distressed stock in the United Arab Emirates. The objective of the Fund is to provide the investors with high capital growth in the medium term through investment in a diversified range of property investment options.
Whilst the rest of the world struggles, here in the UAE the property markets are expected to demonstrate growth rates in the coming years owing to the development of enormous national resources and related infrastructure projects, major ongoing foreign direct investments and entrance of international, regional and local investors into the local markets.
Investment Strategy
The Fund will focus on the both the most undervalued stock that is notably labeled as 'distressed'. The global financial crisis has forced out speculators and the UAE real estate sector has become a buyers market. Whilst some investors and developers are starved of credit our liquid cash fund can take full advantage of the opportunities that are available. The various assets classes in which the Fund may be invested:
Direct Investments
The Investment Manager believes that the Fund should actively pursue direct investments into property assets and projects in the undervalued markets, most notably ‘distressed’ assets. The Investment Manager will seek to invest larger property investments across various segments and assets in order to maintain sufficient liquidity and ability to buy and sell property assets through direct investments.
Debt Securities
The Investment Manager believes that short term high yield debt financing to capital-constrained property developers in the UAE exhibit favourable investment characteristics.
Portfolio Allocation
In order to limit the downside risk of an investment in the share class, the investment strategy allocates a sufficient proportion of the share class subscription assets to a Zero Coupon Bond issued by Credit Suisse Bank (Aa1/A+) in order to provide 90% of the investors initial subscription value at the final maturity date (90% capital Protection as promoted by the investment manager). The proportion of the share class subscription not used to purchase the Zero Coupon Bond will be allocated to the Real Estate investment strategy of the fund.
Main Objectives to Investors
- To deliver consistent annualised positive returns of 15% while maintaining a profile of low volatility performance.
- To provide investors with access to an actively managed fund holding assets with high growth potential.
- To provide short term positive returns through capital appreciation.
- Benchmark return 63% (compound growth) over 3 years, net of charges.
Favored Sectors
- Offices
- Land
- Residential
- Industrial
- Labour Camps