UAE-based conglomerate Palmon Group has launched what it claims is Dubai’s first private commercial real estate investment trust (REIT).
The fund, called Manrre, will be aimed at qualified investors and has been developed in compliance with the laws of the Dubai Financial Services Authority.
Manrre’s portfolio currently consists of 19 real estate properties worth $59 million covering logistics, industrial and commercial assets. The fund plans to raise around $90 million to fund the acquisition of additional rent-yielding commercial assets.
The REIT's core investment objective, says Palmon Group chairman Manhar Lahori, is to generate a regular source of income for investors through quarterly dividends and an 8% annualised return. “Our vision for Manrre is to list the fund on stock exchange within the next two years to generate maximum return for our investors,” said Lahori.
The launch of Manrre comes shortly after the exchange Dubai Financial Market signed a memorandum of understanding with the Dubai Land Department to allow for the listing of REITs and real estate companies.
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