Global Investment House announced on Tuesday the successful acquisition of its first asset in the Global GCC Real Estate Fund-II. Global seeded the fund with USD50million. The Global GCC Real Estate Fund-II is a $500million close-ended fund that was launched in July 2008 dedicated to capitalizing on investment opportunities in the GCC region. Shailesh Dash, senior vice president and head of Alternative Investments at Global, said: “The Fund has acquired a ‘Class A' commercial building nearing completion known as the Mashreq Tower for $30million with the seed capital at Cairo Square in Riyadh.” “Within two months of acquisition, we have received an expression of interest in buying the building for $42milliion (40 percent value appreciation). We expect that the capital value of the asset will become much higher after the leasing of the property, rental stabilization, and further value creation”. Mashreq Tower was acquired from a very respected business conglomerate in the Kingdom, who is the anchor tenant of the tower. The building is comprised of two basements, a ground floor, and nine floors with a total leasable area of 9,300 square meters. “It is a modern structure that is designed efficiently and has the most superior electrical and mechanical systems with an excellent curb appeal” Dash said.
