European Real Estate Fund launched

The 'Solidarity' European Real Estate Fund offers investors an opportunity to invest in attractive, stable European real estate markets distinguished by healthy long-term market performance and favorable return potential in major cities.

"European markets with a potential 3-3.5% increase in the rental index year on year and stable rental cashflows have spurred an increase of investments into the Pan European region. From this, the Fund offers obvious financial benefits for our clients," said Ziyad Arekat, General Manager, Asset Management - Solidarity.

"The Fund seeks investments in European real estate markets characterized by low political risk, and acceptable levels of market liquidity. European real estate markets have a sustained record of stable economic growth, a controlled inflationary environment and low market volatility."

Investment in real estate through this new Solidarity Fund affords investors a diverse set of benefits including low long-term correlation to equity and bond markets and portfolio diversification. It has the potential to provide attractive risk-adjusted returns through the application of leveraging, a significant current income environment, a hedge against market inflation and a tangible and secure asset class.
Arekat emphasized that the Fund shall maintain a diversified investment base spread across a range of real estate sectors, including residential, industrial, commercial and retail. The Fund also seeks to benefit from regional diversification across Europe.

Solidarity has developed a comprehensive Sharia'h compliant fund management capability where clients have access to a wide range of unit linked investment funds. Each fund has its own investment objectives with its relative risk versus return parameter. The 'Solidarity' European Real Estate Fund joins a growing portfolio of investment opportunities. These funds span a variety of sectors including equities, leasing and Sukuk, Morabaha, real estate and other specialist Funds.

Solidarity is in the process of adding new funds to its range allowing its policyholders to benefit from a wide variety of investment choices.

Established in Bahrain, Solidarity is looking to enter selected markets in the Middle East, North Africa, Asia and Europe over the next three years.