US$100m Dubai Property Fund by Investors Provident

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Investors Provident is delighted to announce the launch of one of the first FSA regulated Gulf Property Investment Fund in partnership with Caledonian Developments (Dubai) Ltd. The investment fund will provide investors with diversified exposure to the dynamic Dubai and Gulf property market. Its aim is to achieve a high level of capital appreciation over a four year period whilst providing maximum tax efficiency for UK based investors.

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As most investors are aware, commercial and residential property in the UK has proven to be a prudent investment as part of an overall asset allocation strategy providing excellent capital growth over the last few years. However, it is now widely accepted that attractive opportunities in the UK have become rarer and investment returns are starting to decrease. Consequently sophisticated investors are seeking to diversify their investment portfolios with well researched and managed overseas opportunities targeted at maximizing capital growth.

Investors Provident is therefore delighted to announce the launch of one of the first FSA regulated Gulf Property Investment Fund in partnership with Caledonian Developments (Dubai) Ltd. The investment fund will provide investors with diversified exposure to the dynamic Dubai and Gulf property market. Its aim is to achieve a high level of capital appreciation over a four year period whilst providing maximum tax efficiency for UK based investors.

It has been widely accepted that access to the Dubai property market is becoming increasingly "expensive" and investors are now required to put higher deposits to achieve just nominal returns. The Dubai Property Fund allows investors access to a wide range of off-market investment opportunities with excellent capital returns, but without having to invest large sums.

Some key highlights of the fund are:

  • The investment fund aims to provide capital growth of between 15% and 20% pa based on current realistic assumptions (For example, an initial investment of £100,000 would return anywhere between £184,000 to £225,000 in 4 years time)
  • Capital growth prospects are excellent, considering Directors and Managers past achievements and experience in the Gulf Region. They have achieved investment returns well in excess of 30% per annum.
  • Access to transactions not normally available to UK investors including government backed opportunities. For example, investors will have the opportunity to co-invest in projects like Jumeirah Lake Towers, DIFC and Dubai Sports City through investments not normally available in the open market.
  • An anticipated investment term of 4 years.
  • Significant financial commitments on behalf of the Directors and Managers who will co-invest around £1 million on equal terms with investors.
  • Diversification of Risk. Investments will be made in a portfolio of developments, including commercial, residential and industrial projects in Dubai and subsequently, across the wider Gulf region.
  • Significant tax efficiencies are anticipated through Business Asset taper relief. This means that any UK higher rate tax payer will pay only 10% on Capital Gains.
  • Active management by an experienced property investment team, Caledonian Management Limited in a joint venture with Al Mazaya Real Estate, an established local company listed on the Dubai Financial Market.
  • Target capital of US$100m (£60m) with a minimum individual subscription of £50,000 and thereafter in tranches of £25,000 (subject to an upper individual investment of £5,000,000). Each investment will be split between shares in the company and loan stock.

Given the excellent growth potential and risk diversification characteristics of this investment, Investors Provident anticipates investment in the fund will appeal to a wide range of investors. The closing date for investments into the fund is 5th May 2006.

For further information on the Property Investment Fund, please contact Investors Provident:

Tel: +44 870 1999 859

Fax: +44 870 1991 858

Website: http://www.investorsprovident.com

Direct link to fund information:

http://www.investorsprovident.com/MiddleEast/Dubai/development.asp/ID/115

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Hetal Shah