Manree Logistics Fund Joins Nasdaq Dubai
Move by Dubai-focused fund strengthens its position to capitalize on the regional e-commerce boom
Link to region’s international exchange comes on the back of robust performance as the fund approaches its third year
Dubai, March 3, 2020 – Manrre Logistics Fund, a private Dubai-based investment company, today placed its shares into Nasdaq Dubai’s share depository as the company expands options for qualified investors.
Manrre Logistics Fund deposited its shares in Nasdaq Dubai’s CSD (Central Securities Depository), which looks after them on behalf of shareholders in a trusted environment. The CSD also facilitates share transfers between investors.
Launched in 2018 by Dubai-based Palmon Group, Manrre is a private real estate fund managed by Dalma Capital. Manrre focuses mainly on institutional-grade logistics and industrial properties in locations including JAFZA, Dubai Investments Park and Dubai South.
Ringing the market-opening bell at Nasdaq Dubai to celebrate the occasion, Manohar Lahori, founder and chairman of Palmon Group, said: “Manrre focuses on long-term and stable income generation of logistics and commercial properties, with high exposure to the rapidly growing e-commerce market, a strategy focused on high-yield and a commitment to capital preservation. These characteristics are uniquely attractive to regional and international investors, particularly given the backdrop of historically low interest rates globally.”
“Placing the shares with Nasdaq Dubai’s depository strengthens Manrre’s relationship with investors, demonstrating our ongoing commitment to transparency, governance and safe keeping. The exchange provides a well regulated environment with global visibility,” Mr. Lahori added.
Capitalizing on E-commerce Trends
The UAE is the most advanced e-commerce market in the MENA region with a penetration rate of 4.2 per cent, with Saudi Arabia following closely behind at 3.8 per cent, according to Bain & Company.
“Regional e-commerce is forecast to double by 2022 as Amazon.ae, Noon.com and other online platforms become increasingly popular. E-commerce growth underpins increasing demand for logistics real estate, industrial warehouses and fulfilment centres,” asserted Zachary Cefaratti, CEO of Dalma Capital.
In 2019, logistics firm Aramex launched a 60,000 square metre fulfilment centre in Dubai. Amazon-owned Souq.com opened a new 23,000-sqm-fulfillment centre in 2018, its third in the UAE. Furthermore, the GCC region is the fastest-growing market globally with an anticipated 2020 e-commerce spend totalling $10.8bn, marking a compound annual growth rate (CAGR) of 26.6 per cent from $5.4bn in 2017.
“While this dynamic has already caused logistics to become the hottest real estate investment class globally, the trend is only beginning in the GCC and remains overlooked. With limited supply, increasing demand and attractive real estate prices at this stage in the market cycle, we see ideal conditions for investment” added Cefaratti.
Manrre reported a total annualised return of 12% since inception, with a portfolio valuation of 72.33 million US dollars at the end of 2019. Of its portfolio total built-up area, logistics and industrial account for 70% of assets.
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “We are delighted to have begun this collaboration with Manrre and are ready to support the fund’s growth and development plans in a number of ways as it pursues its business strategy. Our efficient CSD facility for private companies is an effective platform for introducing a wide range of businesses to an exchange environment, as a step towards engaging in new financing possibilities.”
Nasdaq Dubai’s CSD supports the processing of a variety of corporate actions including payments to shareholders and provides close links with international CSDs. Transfers of ownership of all shares in Manrre will take place off-exchange within the CSD.
Manrre REIT (CEIC) PLC trading as Manrre Logistics Fund is based in Dubai International Financial Centre (DIFC).
About Nasdaq Dubai
Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).
The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).
About Manrre Logistics Fund
Manrre is an Exempt Fund for qualified investors. The fund is established in compliance with the laws and rules of the Dubai Financial Services Authority (DFSA).
Manrre’s principal objectives are capital preservation and high returns, stable income with a focus on logistics, industrial and commercial real estate assets. The fund launched in 2018 under the sponsorship of Palmon Group and is managed by Dalma Capital.
The fund provides access to a segment of the real estate market known for high income and stable valuations, but which is typically only accessible to large institutional investors and requires sophisticated expertise. The team behind Manrre are arguably the most experienced investors in an asset class that is booming globally due to e-commerce in a region experiencing the world’s fastest online sales growth (expected to double by 2022), all while asset prices are at cyclical lows and interest rates appear likely to remain at near-historical lows for the foreseeable future.