Dalma Capital’s Manrre Logistics Fund joins Nasdaq Dubai
“E-commerce growth underpins demand for logistics real estate, industrial warehouses and fulfilment centres:” Dalma Capital CEO
Dubai-based investment firm, Manrre Logistics Fund, which independently manages portfolios of institutional-grade real estate assets in the emirate, has placed its shares into Nasdaq Dubai’s Central Securities Depository (CSD), as the firm looks to expand options for qualified investors.
Manrre, which was launched in 2018 by Dubai-based Palmon Group, is managed by investment capital firm Dalma Capital, and 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, the founder and chairman of Palmon Group, Manohar Lahori, 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.
Lahori added: “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 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,” the CEO of Dalma Capital, Zachary Cefaratti, said.
In 2019, logistics firm Aramex launched a 60,000m2 fulfilment centre in Dubai. Amazon-owned Souq.com opened a 23,000m2 fulfillment centre in 2018, its third in the UAE.
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% from $5.4bn in 2017.
Cefaratti added: “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.”
Manrre has reported a total annualised return of 12% since inception, with a portfolio valuation of $72.33m at the end of 2019. Of its portfolio total built-up area, logistics and industrial account for 70% of assets.