Danat India Fund tops $57m
Dubai, June 4, 2008
Emirates Islamic Bank’s Danat India RIA Fund has exceeded all expectations.
Investments into the fund are now closed, with the bank having collected the required amount of Dh210 million ($57.19 million). The Emirates Islamic Bank (EIB) has co-invested its own proprietary money in the fund to the tune of Dh60 million, said an official spokesman.
The Danat RIA Fund, which aimed to capitalise on the booming real estate market in India, found a willing investor audience in and around the UAE. The bank will now acquire 77.78 per cent equity in the Danat RIA Company, which has been established with the principle purpose of acquiring a parcel of land (around 500 acres) to develop an integrated middle income township within the boundaries of New Delhi.
Once developed, the target market of the township will be New Delhi’s growing middle income population who are seeking more affordable housing opportunities.
The response was overwhelming considering that the fund was backed by the trusted EIB insignia and was focused on investing in one of the fastest growing economies in the world.
“We are very pleased with the response to the Danat RIA Fund” said general manager, retail banking of Emirates Islamic Bank, Faisal Aqil. “The Indian real estate market is a prime investment target and this fund gave investors in the UAE a window of opportunity which was readily accepted. We are optimistic that investors will enjoy an expected return of 60 per cent in three-four years on investment and the fund will be a big success because it has been backed by rock-solid research.”
Due to the positive response to the fund, the bank aims to launch a second fund focused on the Indian real estate market. This will add to a growing portfolio of well-researched funds aimed at generating wealth for investors in the UAE. – TradeArabia News Service