Manrre Logistics Fund deposited its shares in Nasdaq Dubai’s CSD (Central Securities Depository), which looks after them on behalf of shareholders in a trusted environment. The CSD also facilitates share transfers between investors.
Launched in 2018 by Dubai-based Palmon Group, Manrre is a private real estate fund managed by Dalma Capital. Manrre focuses mainly on institutional-grade logistics and industrial properties in locations including JAFZA, Dubai Investments Park and Dubai South.
Ringing the market-opening bell at Nasdaq Dubai to celebrate the occasion, Manohar Lahori, founder and chairman of Palmon Group, said: “Manrre focuses on long-term and stable rentals of logistics and commercial properties, with high exposure to the rapidly growing e-commerce market, a strategy focused on high-yield and a commitment to capital preservation. These characteristics are uniquely attractive to regional and international investors, particularly given the backdrop of historically low interest rates globally.”
“Placing the shares with Nasdaq Dubai’s depository strengthens Manrre’s relationship with investors, demonstrating our ongoing commitment to transparency, governance and safe keeping. The exchange provides a well regulated environment with global visibility,” Mr. Lahori added.
Capitalizing on E-commerce Trends
The UAE is the most advanced e-commerce market in the MENA region with a penetration rate of 4.2 per cent, with Saudi Arabia following closely behind at 3.8 per cent, according to Bain & Company.
“Regional e-commerce is forecast to double by 2022 as Amazon.ae, Noon.com and other online platforms become increasingly popular. E-commerce growth underpins increasing demand for logistics real estate, industrial warehouses and fulfilment centres,” asserted Zachary Cefaratti, CEO of Dalma Capital.
In 2019, logistics firm Aramex launched a 60,000 square metre fulfilment centre in Dubai. Amazon-owned Souq.com opened a new 23,000-sqm-fulfillment centre in 2018, its third in the UAE. Furthermore, the GCC region is the fastest-growing market globally with an anticipated 2020 e-commerce spend totalling $10.8bn, marking a compound annual growth rate (CAGR) of 26.6 per cent from $5.4bn in 2017.
“While this dynamic has already caused logistics to become the hottest real estate investment class globally, the trend is only beginning in the GCC and remains overlooked. With limited supply, increasing demand and attractive real estate prices at this stage in the market cycle, we see ideal conditions for investment” added Cefaratti.
Manrre reported a total annualised return of 12% since inception, with a portfolio valuation of 72.33 million US dollars at the end of 2019. Of its portfolio total built-up area, logistics and industrial account for 70% of assets.
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “We are delighted to have begun this collaboration with Manrre and are ready to support the fund’s growth and development plans in a number of ways as it pursues its business strategy. Our efficient CSD facility for private companies is an effective platform for introducing a wide range of businesses to an exchange environment, as a step towards engaging in new financing possibilities.”
Nasdaq Dubai’s CSD supports the processing of a variety of corporate actions including payments to shareholders and provides close links with international CSDs. Transfers of ownership of all shares in Manrre will take place off-exchange within the CSD.
Manrre REIT (CEIC) PLC trading as Manrre Logistics Fund is based in Dubai International Financial Centre (DIFC).