Invest AD, a leading asset manager based in Abu Dhabi, UAE, said it has joined hands with Brookfield Asset Management, a leading global alternative asset manager, to establish a new venture, with a view to creating institutional quality investment products comprising UAE real estate, including a real estate investment trust (REIT) under the regulatory framework of the Abu Dhabi Global Market.

These REITs have become increasingly popular globally in the low interest rate environment of recent years, said a statement from Invest AD.

They offer investors tradable units in real estate portfolios, with a high proportion of rental income passed through in the form of dividends. While generally less volatile than equities, REITs also hold out the prospect of capital gain in a rising real estate market, it stated.   

“The UAE real estate market has reached a level of maturity that requires the professional management of assets and supports the creation of investment vehicles that will be attractive to institutional and individual investors,” remarked Faras Al Ramahi, the chief executive of Invest AD, after signing the deal with Anuj Ranjan, the managing partner at Brookfield Asset Management.

"Invest AD’s partnership with Brookfield, one of the most respected names in global real estate, will help to deliver innovative and value enhancing real estate investment products," he said.

"Through the REIT, which is just the first product that the joint venture is planning, we aim to build a portfolio of high quality assets and bring other property owners across the UAE into a successful partnership, while offering investors the benefits of liquid access to stable, income-generating commercial real estate," stated Al Ramahi at the signing ceremony held in Abu Dhabi.

It was also attended by Brookfield Asset Management CEO Bruce Flatt and Invest AD chairman Mohamed Al Dhaheri.

On the new venture, Ranjan said: "We are pleased to partner with Invest AD to develop a compelling investment vehicle for investors seeking attractive yields through exposure to the UAE’s growing, high quality real estate market."

"Through this REIT, investors will have the opportunity to access a diversified portfolio of premier properties, managed by a team with an established track record for value creation in the sector," he added.-TradeArabia News Service