ADIH plans $2bn realty project by year-end

Abu Dhabi Investment House (ADIH) plans to launch a $2 billion (Dh7.36bn) real estate project in the capital by the end of the year, Emirates Business has learnt.

The development, Porta Moda Abu Dhabi, will mark the three-year-old firm’s entry into the UAE real estate market.

Porta Moda is the brand name of ADIH’s planned $7bn series of mixed-use residential and retail projects concentrating on fashion and style.

“We have finished our due diligence and are going to announce the project in Abu Dhabi by the end of the year,” said Rashad Yusuf Janahi, Managing Director and founder of ADIH. “It will be under the theme of Porta Moda and the size of the project is around $2bn. The concept will also be implemented in Qatar, Morocco, Tunisia and India.”

Janahi said the Abu Dhabi development would feature a district containing premium and luxury brands in the fashion, jewellery and interior design fields as well as town houses, studios, luxury villas, cafes, restaurants, boutique hotels and spas.

ADIH has signed a memorandum of understanding with Emirates International Properties to create Porta Moda Abu Dhabi and with Gulf Finance House (GFH) to establish developments in Morocco – the Royal Ranches in Marrakech – and in Tunisia.

The firm has also signed deals with Qatar Entertainment City and India Entertainment City to develop Porta Moda Qatar and Porta Moda India, added Janahi.

He said a fund to finance the plans would soon be placed through an ADIH team and underwriters who are marketing it in the UAE, Qatar, Oman, Saudi, Bahrain and Kuwait. The fund is also being marketed to international investors based on high levels of indicated interest.

Since its inception in 2005 ADIH has been associated with major projects across the region including the Beirut Gate in Lebanon, Entertainment City Qatar and Sunset Hills, Porta Reef and The Lagoon – Amwaj Islands in Bahrain.

It is also involved in several investment funds in the region. ADIH recently exited the Lagoon Fund, its first fund exit, with a 30 per cent return on investment. The fund was launched in June 2006 to finance the $90 million Lagoon project in Amwaj Islands.

ADIH made a partial exit from the Al Arabi Equity Fund, which registered an internal rate of return of 25 per cent, above the initial 20 per cent target.

It also made a partial exit from Al Arabi Equity Fund, which will give an IRR of 25 per cent, above the initial 20 per cent target IRR.

And a $500m fund introduced and launched by ADIH is being used to implement the first of the firm’s Entertainment Cities in Lusail, Qatar.

Emirates Business

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