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Gulf Islamic Investments’ new Real Estate Investment Trust (REIT) in Dubai will now be accessible not only to the big investors but to any individual who doesn’t necessarily own millions. Find out more about the new REIT initiative below and let us know in the comments as regards to what do you think about the new REIT initiative.

Highlights of the New Real estate investment trust (REIT) in Dubai

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  • People can participate in the new REIT with only 5000/- AED.
  • The investors can develop cash flow into their family and for this the new REIT will be denominated in Dirham’s to avoid any currency disparity.
  • Gulf Islamic Investments stated that they will not be acquiring any asset which is not capable of providing a good return on investment.
  • Gulf Islamic Investments at present has a corpus of $250 million and they will further rise and add on  $200 million to $250 million from Initial Public offering (IPO).
  • REITs usually underlie on risk-reward ratio due to which there is a never ending demand for REITs.
  • An apartment in Dubai with no debt is able earn a 6 to 7 percent Return on Investment (ROI) which is higher than what most of the global cities are able to offer. Industrial assets will be able to generate 12-13 percent ROI. Grade A office in Dubai offers around 8 percent ROI. Gulf Islamic Investments REIT aims to offer an 8 to 9 percent ROI by acquiring a mix of real estate properties
  • Gulf Islamic Investments has earlier bought some signature assets in Dubai such as the PwC office building in Emaar Square (worth $32 million) and a brand new residential high-rise in Downtown (worth $52 million), more properties will be acquired.
  • Gulf Islamic Investments REITs objective is to offer liquidity, cash on cash returns and give regular dividends to investors.
  • Apart from Gulf Islamic Investments’ two other firms who have listed REITS are ENBD and Emirates REIT.
  • The new REIT initiative will diversify investor’s base and offer grand opportunity for people who want to invest in Dubai real estate via REIT.
  • The new plan will have a positive and powerful effect on the Dubai Real Estate as well as UAE property market.

Now that a new REIT with minimal cost is announced, as an investor would you opt to invest directly into a property or choose REITs?

 

 


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