DUBAI, April 22 National Bank of Abu Dhabi
has launched a real estate fund in partnership with a
Kuwaiti firm to seek investment opportunities in the United Arab
Emirates' property sector, the lender said on Sunday.
NBAD, the UAE's top bank by market capitalisation, has
teamed up with Kuwaiti firm Gulf Investment Corp for
the venture, which it plans to convert to a real estate
investment trust (REIT) in the future.
"In the future, it is our intention to bring this fund to an
initial public offering, thereby creating what we expect to the
region's first REIT," Mahmood al-Aradi, senior general manager
of NBAD's financial markets division said in a statement.
The fund will focus on high-quality income generating
properties in the UAE where property prices have fallen sharply
since the 2008 global financial crisis.
It will be launched with a seed capital of 100 million
dirhams ($27.23 million) with NBAD and Gulf Investment pooling
in 50 million dirhams each.
The parties expect to start raising money for the fund soon,
Aradi told reporters in Dubai.
(Reporting by Rachna Uppal; Writing by Dinesh Nair)