UAE-based conglomerate Palmon Group said lead property fund Manrre is now actively targeting logistics and industrial property in robust sub-markets in Dubai such as Jafza, National Industrial Park, Dubai South and Dubai Investment Park in a bid to boost its position as a logistics and industrial REIT (Real Estate Investment Trust).
Manrre had recently acquired Dh220 million ($60 million) worth of Dubai commercial assets paying eight per cent annual dividends, said the statement from Palmon.
On the worries about the Dubai market oversupply, Mark Mobius, the emerging markets investment guru, said: “There was no need for any such conceren. In any growth situation, you’re going to get ups and downs.”
“The important thing to remember is that in these cycles the peaks get higher and higher, because you’re building a larger and larger base,” he added.
Crucially, Manrre opens opportunity to investors often squeezed out of such top-tier strategies, remarked Kunal Lahori, tthe executive director of the family-owned Palmon Group.
“Our family has been investing in Dubai commercial property for over 30 years, we’ve seen many cycles. Dubai remains a world-class, safe-haven investment destination,” remarked Lahori.
“Manrre investment opens an opportunity usually only available to large, institutional investors and UHNWs,” he stated.
“Indeed, the investment landscape is becoming ever-more secure. Its real estate routinely outperforms that in other global destinations and stable, income generating assets can provide a hedge against volatility in equity markets,” he added.
Manrre REIT’s core investment objectives include generating a regular source of income for investors, with quarterly dividends targeting an eight per cent annualised return. With the backing from top investors, the Manrre fund aims to grow to Dh550 million, it added.
One of the longest-standing conglomerates in Jafza, Palmon Group had recently collaborated with Dalma Capital, a renowned hedge fund manager in the Dubai International Financial Centre, to offer an unprecedented opportunity for smaller investors to own income-generating industrial assets across UAE.
Group chairman Manohar Lahori said: “Savvy investors understand that the current market conditions are right to acquire assets and to prepare for when it inevitably picks up. It is a time-honoured and successful strategy.”
Dalma Capital is a global alternative investment fund accelerator and platform focused on alpha generating strategies with an inherent edge in emerging investment strategies and markets, he added.-TradeArabia News Service