Manrre Logistics Fund, a private Dubai-based investment firm, has made two strategic investments in Jebel Ali Free Zone (Jafza), DP World’s leading trade and logistics hub, raising the value of its portfolio by 22.5% to $71.3 million.
Launched in 2018 by Dubai-based Palmon Group, Manrre focuses on institutional-grade logistics and industrial properties in locations including Jafza, Dubai Investments Park and Dubai South, in addition to investments in the cloud, dark kitchen and alternative spaces in the UAE.
The first of the investments in Jebel Ali is a facility leased to Infofort, a subsidiary of Iron Mountain which is a company focused on records management, data backup and recovery, document management and data centres.
AMS Integrated Solutions
The second is AMS Integrated Solutions, a Danish company operating in nine countries specialising in fleet management, technical training, and logistical needs for mission readiness.
Both new additions have fully guaranteed 10-year lease agreements in place.
Commenting on the expansion of the fund, Kunal Lahori, Chief Executive Officer, Manrre, said: “We are extremely proud of the new additions to our ever-growing investment portfolio. Both of the investments align with our strategy on long-term and stable income generation of logistics assets, with high exposure to the rapidly growing e-commerce market. This allows our investors to benefit from a higher-yield and a commitment to capital preservation.
Best-in-class facilities in Jafza
Abdulla Bin Damithan, CEO & Managing Director, DP World UAE & Jafza said: “DP World’s vision is to lead the world of trade through integrated global logistics solutions and our flagship free zone, Jafza, makes this possible through its seamless connectivity and data-driven solutions offered to over 8,700 businesses from 130 countries. This exceptional commitment has caught the attention of leading investment companies, such as Manrre Logistics Fund, that believe in the ability of Jafza-based companies to deliver beyond excellence. We have made optimal use of our facilities to support our partners with best-in-class facilities, and these investments, further solidify Jafza’s position as the ideal business hub to plant and grow, capturing limitless opportunities to scale.”
Manrre’s added commitment to working with world-class partners is reflected in its actions as they have also appointed CBRE as its evaluator and advisor for the next phase of growth of the fund. CBRE is the world’s largest commercial real estate services and investment company, with the leading global market position in leasing, property sales, outsourcing, property management and valuation.
“Since the inception of the fund, we have had a laser-focused commitment to this specific asset class and Covid-19 was a natural stress test on the portfolio. With the right kind of investments that deliver value to our investors, we were able to distribute a cash-on-cash return of 7.7% annually. Having a solid strategy and working with the right partners has allowed us to weather the global macro-economic challenges and now focus on the continued growth of the fund,” added Lahori.
Continued e-commerce boom
The UAE retail e-commerce market reached a record $3.9 billion in 2020, a 53% year-on-year increase driven by the Covid-19-led digital shift, new analysis from Dubai Chamber of Commerce and Industry has revealed. E-commerce accounted for 8% of the retail market during the same year, the data showed.
In addition, the current rising inflation rates combined with global macro instability has seen a rise in demand for the real estate investment sector which has traditionally been viewed as a stable base.
This continued growth, drives increasing demand for logistics real estate, industrial warehouses and fulfilment centres; all of which form the core of the Manrre Fund’s portfolio.
In 2020, Manrre deposited its shares in Nasdaq Dubai’s CSD as part of their continued evolution. Nasdaq Dubai’s CSD supports the processing of a variety of corporate actions including payments to shareholders and provides close links with international CSDs. Transfers of ownership of all shares in Manrre will take place off-exchange within the CSD.-- TradeArabia News Service