NBD launches its first European Real Estate Fund

The closed-ended real estate fund will provide investors with exposure to a diversified portfolio of commercial properties in the UK and major continental European countries that offer superior growth and value opportunities. The Fund will invest in office, retail and industrial investments with strong rental earning profiles, opportunities for income enhancement and sustainable capital growth. Investors will receive a quarterly income coupon plus a capital distribution when assets are sold.

50% of the Fund will be invested in an established CIT UK Investment Fund and the other 50% will be invested in mature European (Euro zone) markets. The European investments will be selected on an opportunistic basis.

Once fully invested the Fund is targeted to distribute an income of 8% pa (2% per quarter), the capital distribution will increase total returns to target 15%pa I.R.R.

"An integral part of NBD's strategy and commitment to its customers is to provide diversified investment opportuntities," said Faranak Foroughi - Head of Private Banking "Real estate funds are an ideal building block for enhancing and safeguarding the assets of investors wishing to develop their investment portfolios."

NBD is offering investment in the fund for a minimum amount of US $101,000. The initial subscription period started 1st August 2005 and will continue until 31st October 2005. Units will be issued at a subscription price of US$ 1,000 per unit. Investors can subscribe to the closed-ended Fund only during the Initial Offering Period.

Gerard Linehan, NBD Manager Real Estate Investments said "The launch of the European Real Estate Fund is an important development in National Bank of Dubai's investment range. The Fund is aligned to clients' stated requirements, exploiting our strategic alliance with CIT and in-house expertise."

NBD is in the process of adding new investment funds to its portfolio allowing its customers to benefit from a wide variety of investment opportunities across a variety of asset classes and markets.

'The Private Office' - The Private Banking Services of National Bank of Dubai

With the establishment of 'The Private Office', NBD offers clients a tailored facility to professionally manage, grow, safeguard and diversify the future of family wealth, generation to generation, in a continuously evolving investment environment.

'The Private Office' has been involved in various regional investment initiatives and has been selected as co-lead manager for both issues of the Government of Iran Eurobond as well as co-lead manager of the landmark issue of The Government of Dubai Bond.

Teams of relationship managers and specialists in Dubai, London and Jersey ensure that clients' assets achieve maximum performance. Leveraging the resources of the Bank's global Alliance partners, the Bank's wealth management services extend across a range of key financial centers.

Moreover, 'The Private Office' launched the NBD Gulf Balanced Fund, the Bank's first in-house managed fund. The primary objective of the Fund is to seek capital growth by investing in a portfolio of GCC and regional equities, bonds and other securities issued by GCC governments and corporations. The Fund has been listed on the Dubai Financial Market.

'The Private Office' in collaboration with Russell Investment Group offers investors some of the world's leading 'manager of manager' funds. Clients of 'The Private Office' are able to access the Multi-Manager Solutions, a comprehensive solution based on an investment discipline that has been successfully used by wealthy individuals and many of the world's major institutional investors. The service gives clients the best of both worlds - asset allocation advice tailored to their needs and an expert fund manager selection implemented by Russell.