Vehicle: The Abraaj Real Estate Fund L.P. (AREF)
Continuing investment
Country: Ras Al Khaimah
Sector: Golf-oriented residential and leisure community
Investment date: September 2005
Transaction size: US$20 million committed
Stake: 50%

Profile: EHDC is a development company incorporated in the UAE to create a world-class golf resort on a 500-acre site in the Emirate of Ras Al Khaimah.

Acquisition structure: Direct equity investment.

Investment rationale: The Tilal Resort – or, in English, Dunes Resort – will be a landmark leisure destination designed to capitalise on the growing demand for real estate in the northern Emirates. The resort will include an 18-hole championship golf course, 900 residential units, a hotel and other associated facilities and offers the potential for an IRR of 50%.

Post-acquisition strategy: Abraaj has management control of the project and has worked with international experts to bring a distinctive high quality vision to the resort. EHDC also expects to secure Royal decrees allowing the residential units to be sold on a freehold basis to expatriate buyers.