Fund to build upscale developments, raises capital from North America, Europe, UAE

Dubai-based Global Partners Limited has raised $212 million for a real estate fund focused on the build-to-rent housing market, highlighting a growing institutional investor interest in UAE real estate.

The Global Partners Property Fund I (CEIC) Limited, a qualified investor fund based in the Dubai International Financial Centre (DIFC), attracted investors from North America, accounting for 35%, Europe (37%) and the UAE (27%).

Global Partners Limited is an institutional fund manager specializing in alternative investments and is regulated by the Dubai Financial Services Authority (DFSA).

Build-to-rent has become a popular investment option in recent years, as the rental market continues to grow on the back of rising population in many markets around the world. In the United Kingdom alone, around £2.5 billion ($$3 billion) was invested into the build-to-rent sector during the first six months of 2022, according to Savills.

In Dubai, there is still a “huge gap” in the rental market for tenants who are on the lookout for prime homes, according to Global Partners.

Dubai fund

The newly closed Dubai-based fund focuses on the emirate’s build-to-rent housing market, with two projects on the Dubai Water Canal, which will be branded as Eden House, The Canal, and Eden House, The Park. The two properties are expected to “address a market gap for affluent renters” in Dubai, according to a statement.

Martin Linder, CEO at Global Partners, said that Dubai’s real estate sector has attracted growing interest from institutional investors.

“Institutional capital is increasingly interested in Dubai real estate, and we have created an ideal fund to cater to this demand,” Linder said.

According to Miltos Bosinis, CEO of the fund’s development partner H&H Development, the recent investment initiative proves that Dubai has become a global financial hub that attracts investor interest “from all over the world.”

Dubai’s rental market continues to provide attractive returns, with properties in popular locations like Dubai Marina offering return on investments (ROIs) of around 7%, according to Bayut.

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