The Manrre Real-Estate Fund, managed by a Dubai-based alternative investment platform
Dalma Capital, has generated a total annualised return of 12.5 per cent - including an 11.9% coupon paid to shareholders and a 0.6% increase in NAV per share - significantly outperforming the benchmark which has lost 27% over the same period.
The fund focuses on the logistics and industrial sector – an area which is of high interest for investment, said the statement from Dalma Capital.
Manrre has published results after closing its first year since inception with strong yield and capital appreciation on its Dh215 million portfolio - a stark contrast to market sentiment and the performance Dubai’s other real-estate funds, it added.
“Our outlook for the Manrre fund called on the wise words of Warren Buffett – ‘be greedy when others are fearful, and fearful when others are greedy’”, remarked Manohar Lahori, a director of Manrre and 30-year veteran of Dubai real-estate investment.
“This principle will allow us to outperform in the long-term and take advantage of market cycles,” he stated.
CEO Zachary Cefaratti said: " The logistics and industrial real-estate sectors are benefiting from the regional e-commerce boom underpinned by the launch of Noon and Amazon.ae. As we have seen in other markets, when retail spending behavior shifts to online shopping, real-estate demand shifts from retail centers to warehouses."
"The 21st century mall is an Amazon fulfillment center," he added.
According to Dalma Capital, the continued growing demand from Manrre’s tenants for warehouses, logistics facilities and centralized kitchens on the back of the ecommerce and tech boom had helped contribute to the outperformance of the fund.
The focus of the Manrre fund remains in logistics and industrial assets, but the fund acquires assets opportunistically in other segments of the commercial real-estate market with a focus on creditworthy, stable tenants, it stated.
The apparent bottoming and turnaround of logistics and industrial real-estate is an optimistic sign for Dubai real-estate and could be a leading indicator that market conditions are improving broadly, it added.-TradeArabia News Service
Manrre real estate fund nets 12.5pc annual returns
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