Leading private equity firm Abraaj Capital's new income-generating real estate fund, ASAS has made its first acquisition, of a grade-A commercial office building in Cairo.

ASAS, which means foundation in Arabic, capitalises on the opportunity resulting from the lack of institutional ownership of commercial real estate in the Gulf and wider Middle East and North Africa (Mena) region, as well as the asset-heavy balance sheets of many regional companies and the severe undersupply in certain real estate sectors.

Structured as a unique blend of quarterly returns and sustained capital stability, ASAS focuses on long-term, income-generating assets in the real estate market. These characteristics of the fund have proven to be appealing to investors at a time when they are focused on cash-flow management.

“The ASAS private equity real estate platform is a demonstration of Abraaj Capital’s commitment to its holistic alternative asset management strategy, leveraging the firm’s expertise in the region with the support of a dedicated real estate investment team,” said Mustafa Abdel-Wadood, managing director, Abraaj Capital.

“The investment rationale is supported by an undersupply of premium office space in Cairo and by attractive economics,” added Faisal Khan, principal, Abraaj Capital.-TradeArabia News Service