The investment policy of the Company is two fold. Firstly to invest in residential and commercial projects within designated targeted areas that have been identiﬁed as having potential for above-average rental yields and strong capital growth. Secondly to invest in stock, prior to completion, at a discount to valuation. These two classes of investment are not necessarily divergent, as the latter can either be sold on completion for capital gain, or dependant on the market demand, held for rental yield and longer-term growth.

The Directors believe that there are many strategic opportunities available in specific sectors within both the residential and commercial property markets. At the top end of the residential market, there will be a new wave of international interest now the first Palm (Palm Jumeirah) is nearing completion leading to strong rental demand, especially in the shorter- term holiday sector resulting in above average yields.

The Company aims to purchase a range of one- and two-bedroom rental apartments. The majority of these will be targeted at ‘middle management' employees with a smaller percentage being aimed at executives so as to add diversification to the portfolio. Additionally, this sector will also cater for the budget tourism market when Dubailand is completed.

The Company will retain the services of Cluttons LLP, D.J. Alexander and PK Rent as property advisors. These firms will also assist in identifying both areas and rental opportunities where the Company can invest, and will also provide a potential avenue for both rental and disposal of investments, with access to local investors, international investment groups and corporate lets for incoming companies.

Rental

The Company will aim to achieve the highest possible yields across the range of apartments under management. D.J. Alexander and PK Rent will be responsible for all managements aspects of the properties. A spread of both 12 month leases and short-term holiday lets will be employed to maximise returns whilst still maintaining a steady income flow.

Security

The Company will only invest where there is a high degree of security of investment in terms of the recipient company/vehicle and the actual opportunity. Investments will be made in or in conjunction with mid- to large-size companies, rather than becoming prime or sole investors in a project. This will provide more flexibility as well as spreading the risk. The major developers are Government-backed, and if not, there is normally a requirement for developers to place a bond with the Government before building can take place. This in effect limits operations to adequately funded companies.

Leverage

The Directors believe that there is now the possibility of securing a measure of debt finance and are pursuing this with the appropriate financial institutions.