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Caledonian Prove Investment Potential in Booming Dubai Property Market
Following a 40% first year increase in underlying property assets within the development fund we have launched an income fund for UK investors to
take advantage of the exceptional yields in the Dubai property market.
With a minimum investment of £50,000 over a five year term, the fund will pay a dividend of 7.5% after year two as part of a budgeted annual return on investment in the region of 15% although we are confident that far greater returns can be achieved.
Caledonian's chief executive Ian Russell said: "Given that we have already achieved in excess of 25% in our development fund based purely on equity financing, I genuinely believe that annual returns of 25% are more than achievable in an income fund, coupled with the introduction of debt finance. Caledonian have consistently achieved annual returns in excess of 30% per annum over the last six years, so our track record speaks for itself".
"The timing to launch the fund is reinforced by a recent report by HSBC that both residential and commercial supply is not expected to meet demand in Dubai until 2015, and the present double figure yields are more than sustainable during that period."
The success of the business is attributed to the combination of an experienced team of specialists from Dubai-based Caledonian and the unique alliance with a major Middle Eastern property development company, Al Mazaya Holdings, who are listed on both the Kuwait and Dubai financial markets.
This alliance gives the business a competitive advantage as it has access to investment opportunities not readily available to overseas investors. Both Caledonian and Al Mazaya's have in-depth knowledge of the Dubai property market and a network of high level contracts established over a number of years. This results in them often having access to proposed initiatives before they come into the wider public domain.
Directors are so confident in the fund that, as they did in the previous development fund, they will co-invest in the income fund on exactly the same terms and conditions as other investors.
The Fund will primarily invest in completed stock which will be held for rental yield. Rental yields are currently in excess of 10% in the Dubai market.
Offer open to UK residents only
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