The property market in the GCC is ripe for real estate funds with billions invested in it. About 20 such funds with USD 3 billion are looking for investment opportunities according to the officials.
The booming property market in the UAE is ready for the real estate funds. Blair Hagkull, managing partner of RSP Group said: "Corporatisation in the real estate market is currently taking place as more and more Gulf investors are putting their money in funds to be utilized for real estate assets and development projects. Cross-border cooperation is taking place among Gulf investors, who earlier shunned the idea of putting money into funds."
"Though fund development in the region is still in early stage, the interest level is growing. With Dubai showing the way, most GCC countries are now coming up with mega projects with innovative ideas. New and innovative development ideas are being promoted and sought by the region's political leaders. As a result, we see new concepts and ideas being executed. We are getting a lot of inquiries to translate lands into projects and developments," said Blair Hagkull.
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| Blair Hagkull |
Earlier the Gulf investors and developers were building their own projects without sharing their expertise. With economic integration, a lot of GCC investors are learning from Dubai's experience and we are lending expertise.
The RSP Group is currently putting together four project funds, estimated to total USD1 billion. The company recently closed a USD 250 million hotel fund to develop 30 Express by Holiday Inn hotels. The fund for Express by Holiday Inn was announced during the Arabian Travel Market 2004. According to Hugkull, the fund has been closed and work on some of the hotels is about to start.
RSP Group, the largest real estate investment advisory firm based in the Middle East, has projects well over USD 50 billion in the pipeline. Seven out of eights projects in Dubailand are in the pipeline and to be announced by developers.
"During the last four years, we were involved in projects worth USD 150 billion," Hagkull said. "Interest in our expertise is so strong that we have opened an office in Istanbul to locate suitable investment opportunity in Turkey. There is ample scope for investment within the GCC, Middle East and North African regions."
