The subscription deadline for Real Estate Musharakah Notes (REMNotes), a Shariah-compliant UAE distressed property fund worth $50 million (Dh183m), has been extended until October 29.

The fund is being offered by Mayfair Wealth Management (MWM), a financial and investment advisory services provider based in the Cayman Islands.

CEO Amani Choudhry said there had been massive demand for the product from regional investors.

REMNotes has been launched to take advantage of the correction in real estate prices. MWM expects the fund to deliver an annual returns of 12 to 15 per cent by allowing investors to participate in the acquisition of undervalued properties in the UAE.

The product is based on the Shariah principles of Musharakah - or equity participation - and provides an opportunity to invest in the UAE real estate market in a more secured manner while earning above-average returns through future sales and the long and short-term leasing of the properties.

"The huge demand for REMNotes is a testament to the potential of this distressed property fund and its attractiveness among investors, who appreciates the simple and ingenious way it leverages the current downtrend in the property market," added Choudhry.

"We have made a decision to extend the subscription deadline after seeing the massive attention and demand REMNotes has garnered across the region, with many individuals and companies still expressing their interest. We are confident that this extension will give them ample time to make their move and capitalise on this excellent investment opportunity."

He said demand had been particularly strong in the UAE and Bahrain.

"We believe that some of the primary driving factors for the growing appeal of REMNotes is its Shariah compliancy, spread of risks, high returns, accountability and transparency."

The fund is available to individual, joint or corporate investors with a minimum stake of $25,000, and its performance will be tracked in semi-annual reports to be published by MWM.

MWM has linked up with E-valuations Chartered Surveyors, a Dubai-based valuation firm, and Mayfair International, a UK-based global property consultancy firm. The partners will ensure that the properties acquired are managed efficiently and yield excellent returns.

MWM offers a range of services including the development of Islamic products, financial analysis and modelling and Shariah-compliant trade and project financing.

By Staff Writer

© Emirates Business 24/7 2009 omar 1.1:zy