Emirates Islamic Bank (EIB), a leading Islamic financial institution in the region, plans to launch a second fund focused on the Indian real estate market following the successful closing of its Danat India RIA Fund, the bank said yesterday.
The bank said the new fund will add to a growing portfolio of funds aimed at generating wealth for investors in the UAE.
EIB has successfully closed the Dh270 million Danat India RIA fund, which invests in the Indian real estate sector. The bank has paid up to Dh60m and collected Dh210m through subscriptions in the UAE and other GCC countries.
The bank, through the fund, will acquire 77.78 per cent equity in the Danat RIA Company, which has been established with the principle purpose of acquiring 500 acres of land to develop an integrated middle-income township within the boundaries of New Delhi. Indian investors own the remaining stake in the company.
Faisal Aqil, general manager of retail banking at EIB, said the fund – the first EIB fund dedicated for investment in the Indian real estate sector – could achieve its targeted subscription.
"Construction of the project has already started and the mandate is for 36 months. However, the EIB has the right to extend the fund's mandate to 48 months according to developments in the project.
"The target market of the township will be New Delhi's growing middle-income population who are seeking more affordable housing opportunities," he said.
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