Luxcapital Partners UAE Real Estate Fund I
Luxcapital Partners UAE Real Estate Fund I is a Distressed Real Estate Fund that invests in real estate distressed assets in the UAE, with its main focus in Abu Dhabi and Dubai.
Characteristically, the fund takes advantage of both the low valuation of the real estate assets after a very sudden decrease of asset values of 50% and the current high rental yield in both the commercial and residential markets. The fund choice of opportunities is based on utmost care regarding the quality of the assets acquired (all finished properties)
LuxCapital Fund Management strategy
The key pillars of our Fund Management strategy are the following:
- Bulk purchasing, which generates economies of scale in order to achieve discounts to buy at below-market price
- Insider knowledge in order to access opportunities restricted to certain stakeholders
- Active portfolio management with a high asset turnover and operational leverage to maximise returns to investors
- Portfolio diversification to reduce un-systematic risk
- Strong strategic partnerships with largest players in the region
- Founders’ track record with a capital appreciation 2.5 times higher than that of the market
- Optimal legal structure to minimise tax impact
The Investment Committee has been created by bringing together private equity, corporate finance and industry skills, together with real estate transaction industry experience. The management team of the Investment Committee has previously managed several real estate portfolios, a private equity portfolio and has a substantial track record of successful deals, working with leading financial services companies including Monitor Company, Ernst & Young, Delta Partners, Valoris and Europraxis Consulting. The Investment Committee is part of the Lux Group, which also comprises LuxHabitat LLC a Dubai-based real estate agency with UAE focus and partnerships with the main developers in the country.
Close ties with other Co-investors allows LuxCapital Partners continuous access to a unique pool of relationships and expertise that will give it a distinct edge throughout the investment cycle:
- Extensive deal flow through the Investment Committees network of relationships and previous experiences with market trends that are about to emerge in the UAE;
- Accurate assessment of the business opportunity during the due diligence process;
- Solid industry expertise on both strategic and operational level to allow LuxCapital to make the right value call for Shareholders; and
- In order to realise these benefits, the Investment Committee of LuxCapital Partners sit on the Investment Committee, and a group of Co-investors and senior industry experts are asked for advice by LuxCapital Partners Investment Committee on a regular basis.