The Social Insurance Organisation (SIO) has launched a new development company, Amlak, to manage the long-term sustainable growth of its real estate portfolio.

Amlak, a subsidiary of the SIO, will focus on maintaining optimal risks and deliver "above-the market" returns for all the properties currently owned by the organisation, reported the Gulf Daily News, our sister publication.

"International best practice is to develop pension funds that drive investment strategies with a view to achieving a maximum rate of return without undue risk of loss," remarked Amlak chief executive Hamid Al Awadhi.

"We have witnessed the success of other nations in redefining its pension investment strategy either by diversifying or developing an independent investment arm," he said.

With a strong portfolio of properties of all classes and types under its belt, Amlak will fuel the growth of its portfolio through a balanced investment strategy founded on a stern governance model and investment management framework.

"Amlak is mandated by the SIO to maintain a stream of income proceeds while ensuring a healthy growth in the capital base," added Al Awadhi.

"The team leading Amlak has a wealth of experience and we have developed policies and procedures to ensure that all our investments moving forward are demand-led and value-driven," he said.

Other than building investment opportunities, Amlak will be evaluating current properties and devising a development plan to boost property values.

A number of properties are currently under renovation and will soon be re-launched under a new management.

"We have a wealth of properties - our strategy for the next three years is to re-evaluate each property and maximise the return of equity owned by the SIO," said Al Awadhi.

"Our team includes engineers, real estate experts and financial analysts," he stated.

"We are able to develop and manage each property internally from developing the feasibility study, managing the contractors and overseeing tenants," he added.

The team will be working during the next months on identifying new medium-term and long-term investment segments.-TradeArabia News Service