Gowealthy Holdings enters real estate asset management business with Gowealthy Capital

Gowealthy Capital is looking at four funds worth $325m in the second and third quarter of this year which includes a $110m fund targeting warehouse and distribution facilities.

Gowealthy Capital Limited, a wholly owned subsidiary of Gowealthy Holdings FZC and owner of the international award winning property portal www.gowealthy.com, is geared to promote and market several collective real estate investment fund portfolios offering tailored management services to high net worth individuals and the corporate client.

Initially the investments will be concentrated in the UAE and will later diversify into the greater GCC region, thereby permitting the Asset Manager to take maximum advantage of the Company's strong local real estate dominance through its extended resources and expertise of the brand Gowealthy.com

According to Peter Penhall, Senior Executive Officer of Gowealthy Capital, the venture has been launched to take advantage of the price correction in the market and leveraging a long term opportunity to deliver enhanced returns to the investor. Gowealthy Capital will be focusing on a diverse fund portfolio with a variety of asset classes and risk / reward structures.

Penhall feels that a number of third party funds that are planned to be released onto the market are short term and are intrinsically structured on providing individual developers with a bridging finance mechanism for their specific projects. In opposition to this, the property funds that Gowealthy Capital will be bringing to the market are structured around the quality of the asset from an investment profile point of view focusing on long term sustained returns to investors.

"Our assets under management will attract investment capital from a wide source due to its core value propositions, assuring the investors of a uniquely transparent investment experience. Our goal is not to enter the market for a short term gain, as our primary goal is to buy quality, income producing assets that will show a good healthy long term capital growth," he said.

The funds will have duration of around five years as Penhall stressed the danger of investing in real estate for short-term gains.

"The challenge in Dubai real estate was that there were too many short-term players of a speculative nature and they all burnt their fingers badly. The sudden correction in pricing brings about a clear opportunity to contribute a sustainable value proposition to investors in the Gowealthy Capital managed funds," Penhall warned.

"During Financial 2009 we are looking at four funds and we have been retained by two of our premier clients representing the master development and publicly listed sectors to facilitate the launch of funds worth $325m in the second and third quarter. In addition we are formulating a $110m fund, targeting the warehousing and distribution logistics sector on the back of Dubai positioning itself as major distribution hub in the Middle East," he said.

Each fund will be designed within a specific framework, the purpose of which is to minimize risk, track performance, both from a strategic and an operational point of view, in order to maximize client's risk-adjusted returns.

"Corporate governance and integrity is the cornerstone of Gowealthy Capital's operations. In keeping with DFSA's regulatory framework we have appointed an external custodian to manage our investor's escrow requirements and have outsourced the review of our compliance obligations to Capital Advantage (a company regulated by DFSA)," he added.

"This coupled with the high level of internal controls and professionalism adopted by the company in its day to day operations will ensure complete transparency in all our investor dealings. While real estate securities are an attractive alternative investment opportunity, it is important to demonstrate consistent management success to potential investors. Gowealthy is committed to the property industry in the UAE and this new venture further underlines our efforts in this direction," Penhall concluded.