UAE-based Ajman Bank has joined hands with Rasmala Investment Bank, a leading alternative investment manager, to launch Makaseb Real Estate Investments SPV, domiciled in the Abu Dhabi Global Market (ADGM).

The first transaction under the new entity has resulted in the acquisition of an outstanding income yielding portfolio of UAE logistic and residential assets for a net purchase price of Dh327 million ($90 million).

These assets have a combined built-up area of nearly 700,000 sq ft housing 91 warehouses, strategically located in Dubai Investments Park (DIP), and 10 apartments buildings located in Al Jurf, Ajman.

The investment was financed through a combination of equity and a sharia-compliant financing facility, with Ajman Bank participating in the transaction as a strategic seed investor and sole financier, said a statement from Rasmala.

Uniquely there are liquidity windows for investors through a share purchase undertaking over the 5-year investment period. The investment is expected to offer an impressive yield of over 6-7% per annum for investors with exit options, it added.

Commenting on the transaction, Ajman Bank CEO Mohamed Amiri said: "We are extremely pleased to partner with Rasmala in bringing unique innovative investment solutions to UAE investors."

"We continue to address investors’ desire for stable income yielding assets with capital protection and this transaction represents the latest example of the strategy and vision of Ajman Bank whilst contributing to the dynamism of the emirate of Ajman and the wider UAE economy," he stated.

Rasmala Group CEO Zak Hydari said the transaction was a testament to its strong relationship with Ajman Bank and demonstrated its confidence in the UAE economy.

"In keeping with our mission, we have worked closely with Ajman Bank to structure and launch innovative products for UAE investors and for the first time utilising the ADGM platform," he noted.

Hany Sabry, senior vice-president and head of investment banking at Ajman Bank, said: "We are always keen to offer our clients attractive and diverse investment opportunities with the core objective of delivering strong return on investment."

"Our collaboration with Rasmala will provide us with an enhanced set of capabilities and is crucial part of our growth strategy that our customers can benefit from," he added.-TradeArabia News Service