Favorable demographics and an increasingly expanding middle class are fueling demand for real estate in growth markets. Our real estate business captures these opportunities and is committed to offering a holistic alternative investment strategy for investors.
Favorable demographics and an increasingly expanding middle class are fueling demand for real estate in growth markets. Global growth markets house the most rapidly urbanizing cities in the world, with one million people moving to cities every week. These macro and real estate market dynamics in growth markets create compelling investment opportunities, across the risk spectrum.
Our real estate business captures these opportunities and is committed to offering a holistic alternative investment strategy for investors. The dedicated and experienced real estate investment team, working closely with the locally based teams, has a proven ability to source, execute and asset manage investments across growth markets and in a wide variety of real estate sub-sectors.
Recently, The Abraaj Group successfully deployed an income generating real estate fund in the Middle East, North Africa and Turkey regions. Building on this success, Abraaj real estate strategy is currently focused on Africa, the Middle East and Turkey, with Latin America and Asia pursued on an opportunistic basis.
The 47th is a grade “A” office building in the 5th District of New Cairo, Egypt. Built in 2009, the property was purchased by the Real Estate Investment Team in December 2010 as part of a wider strategy to buy high-quality properties in sectors where there are large supply-demand gaps that will enable the generation of stable rental cash flows.
The seven-floor office and retail space, located in the commercial hub of New Cairo, has attracted a number of high-quality multinational corporations as tenants, including Bristol-Myers Squibb, Fujitsu and GlaxoSmithKline. The investment has performed in line with expectations despite Egypt’s recent political uncertainty, retaining its 2010 value and yielding regular rental income. Through a sustained and targeted leasing strategy, we succeeded in increasing The 47th’s occupancy rate from 84% at the time of purchase to 96%. The favorable demographics in Egypt provide long-term support to the real estate sector in the country.