The new fund will be managed by ARA Asset Management and jointly promoted by DIB and Cheung Kong Group. The Islamic-compliant investment vehicle has set aside $450 million to invest in commercial, retail and residential projects in major Asian cities such as Hong Kong, Singapore, Kuala Lumpur, Seoul, Beijing and Shanghai.
Mr Aref Kooheji, Executive Vice President of Investment Banking at DIB, said: "Currently, Asia is the most exciting market with China as the growth engine. After the financial crisis of the late 1990s the economies of many Asian cities are recovering strongly. With China providing the main stimulus, these economies are poised to benefit from continuing investment into the region.
"We have teamed up with one of Asia's largest developers, Cheung Kong Group, for this Fund. Islamic funds have not been active in Asian real estate - we believe this one provides the basis for us to expand our investments into this region.
"We are bringing new and diverse investment opportunities to our investor base in the Middle East. This partnership with Cheung Kong Group is just the first step towards a long term relationship," he added.
Mr Justin Chiu, Executive Director of Cheung Kong (Holdings), said: "We are very pleased to partner DIB in this Fund, which we believe is among the first of its kind in Asia. DIB is a leading Islamic banking institution and we are very happy to facilitate its investment program in Asia. Going forward, we expect to see more opportunities of a similar nature."
Mr Moinuddin Malim, Vice President of Asset Management at DIB, said: "We are excited about this fund, which will invest in a portfolio of assets in the Asian real estate market that have good potential for capital appreciation. DIB has worked with ARA to create a Sharia-compliant structure and is one of the cornerstone investors alongside Cheung Kong Group."
Mr John Lim, ARA's Managing Director, said: "We are very pleased to be appointed Portfolio Manager of the fund and are confident of delivering good returns to investors. ARA is thrilled to be working with the two large investors by bringing their competitive advantages together to create this fund."
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Dubai Islamic Bank and Cheung Kong to establish USD450m Al Islami Far Eastern Real Estate Fund
- United Arab Emirates: Monday, September 06 - 2004 at 15:03
- PRESS RELEASE
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Dubai Islamic Bank (DIB) today announced that it had formed a partnership with the Cheung Kong group, the leading Hong Kong-based conglomerate, to offer Islamic investors access to Asia's property markets through the Al Islami Far Eastern Real Estate Fund.
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Posted by Anne-Birte Stensgaard, Senior News EditorMonday, September 06 - 2004 at 15:03 UAE local time (GMT+4)
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About DIB
Established in 1975, DIB is the first Islamic bank in the world to have implemented the principles of Islam in all its practices. It is regulated by the Central Bank of United Arab Emirates and listed in the Dubai Financial Market. The economic and business philosophy of Islam encourages generation and sharing of profits and risks. Capitalising on the strengths of Islamic business and economic concepts on one hand and utilisation of state-of-the-art banking technology on the other, DIB creates partnerships with its customers to generate profits, which are then shared with them. DIB has created a vast array of Islamic banking and finance products to suit every conceivable need of its customers. Over the years, DIB has emerged as one of the world's leading Islamic bank with innovative solution and customer friendly products and services, which has also earned DIB a handful of international and regional banking awards.
About Cheung Kong
Cheung Kong (Holdings) Limited is the flagship of Cheung Kong Group, the leading Hong Kong based multinational conglomerate. The combined market capitalisation of the Cheung Kong Group of Hong Kong-listed companies amounted to US$64 billion, as of 30 June 2004, accounting for approximately 9 per cent of the total market capitalisation of the Hong Kong stock market. The Cheung Kong Group operates in 42 countries and employs over 180,000 staff worldwide. It is one of the largest property developers in Hong Kong and Asia.
About ARA
ARA is a fund management company owned by its management and Cheung Kong (Holdings) Limited. Its management has extensive experience in real estate fund management. ARA Asset Management (Singapore) Limited, a wholly owned subsidiary of ARA. Currently, it manages Fortune Real Estate Investment Trust a real estate investment trust listed on the Singapore Exchange Securities Trading Limited with total assets of US$450 million, consisting of five retail malls in Hong Kong.
Established in 1975, DIB is the first Islamic bank in the world to have implemented the principles of Islam in all its practices. It is regulated by the Central Bank of United Arab Emirates and listed in the Dubai Financial Market. The economic and business philosophy of Islam encourages generation and sharing of profits and risks. Capitalising on the strengths of Islamic business and economic concepts on one hand and utilisation of state-of-the-art banking technology on the other, DIB creates partnerships with its customers to generate profits, which are then shared with them. DIB has created a vast array of Islamic banking and finance products to suit every conceivable need of its customers. Over the years, DIB has emerged as one of the world's leading Islamic bank with innovative solution and customer friendly products and services, which has also earned DIB a handful of international and regional banking awards.
About Cheung Kong
Cheung Kong (Holdings) Limited is the flagship of Cheung Kong Group, the leading Hong Kong based multinational conglomerate. The combined market capitalisation of the Cheung Kong Group of Hong Kong-listed companies amounted to US$64 billion, as of 30 June 2004, accounting for approximately 9 per cent of the total market capitalisation of the Hong Kong stock market. The Cheung Kong Group operates in 42 countries and employs over 180,000 staff worldwide. It is one of the largest property developers in Hong Kong and Asia.
About ARA
ARA is a fund management company owned by its management and Cheung Kong (Holdings) Limited. Its management has extensive experience in real estate fund management. ARA Asset Management (Singapore) Limited, a wholly owned subsidiary of ARA. Currently, it manages Fortune Real Estate Investment Trust a real estate investment trust listed on the Singapore Exchange Securities Trading Limited with total assets of US$450 million, consisting of five retail malls in Hong Kong.
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