Manama, Bahrain - The Bahrain-based International Investment Bank announced Monday the launch of a 65-million-dollar property fund to invest in the Danet Abu Dhabi master development project. The new fund, IIB-Abu Dhabi Properties 1, will be 66.7 per cent owned by IIB with the remaining 33.3 per cent owned by the UAE-based United Friends Company (UFC).
The fund will purchase two plots of land at Danet Abu Dhabi to develop a 21-storey twin-tower building.
One of the towers will house office units and the second will house both residential and office units. The building will also include retail and entertainment units and car parking. The office and residential units will be let initially and then sold.
The fund will exit from the investment within four years and is targeting an Annual Internal Rate of Return (IRR) of 24 per cent.
IIB chairman Saeed Abduljalil al-Fahim pointed out that Abu Dhabis population growth, which is expected to grow by 6.9 per cent between 2006 and 2010, is driving a need for new housing units.
The reports on Danat Abu Dhabi come after IIB's recent 98 million dollar acquisition of three commercial properties in Munich, Germany, and the acquisition and management of a high quality real estate portfolio in France, valued at 105 million US dollars.
