Manrre Logistics Fund, a Dubai-based private investment firm, today announced two strategic investments in Jebel Ali Free Zone (Jafza), DP World’s leading trade and logistics hub, bringing the total value of its portfolio to $71.3 million, up 22.5 percent.
Manrre, founded in 2018 by Dubai-based Palmon Group, focuses on institutional-grade logistics and industrial properties in Jafza, Dubai Investments Park, and Dubai South, as well as investments in the cloud, dark kitchens, and alternative spaces in the UAE.
The first investment in Jebel Ali is a leased facility for Infofort, an Iron Mountain subsidiary that specializes in records management, data backup and recovery, document management, and data centers.
The second is AMS Integrated Solutions, a Danish firm with offices in nine countries that specializes in fleet management, technical training, and mission logistics.
Both of the new additions have 10-year lease agreements that are fully guaranteed.
“We are extremely proud of the new additions to our ever-growing investment portfolio,” said Kunal Lahori, Manrre’s CEO. Both investments align with our long-term and consistent revenue generation strategy for logistics assets with high exposure to the rapidly growing e-commerce market. This provides our investors with a higher yield as well as a commitment to capital preservation.
“DP World’s vision is to lead the world of trade through integrated global logistics solutions, and our flagship free zone, Jafza, makes this possible through its seamless connectivity and data-driven solutions offered to over 8,700 businesses from 130 countries,” said Abdulla bin Damian, CEO and Managing Director, DP World UAE & Jafza. Leading investment firms, such as Manure Logistics Fund, have taken notice of this exceptional commitment and believe in the ability of Jafza-based businesses to deliver above and beyond. We’ve made the best use of our facilities to provide best-in-class support to our partners. These investments further cement Jafza’s position as the ideal business hub to plant and grow, capturing limitless growth opportunities.”
Manrre has also appointed CBRE as their evaluator and advisor for the fund’s next phase of growth, demonstrating their commitment to working with world-class partners. CBRE is the largest commercial real estate services and investment firm in the world, with market leadership in leasing, property sales, outsourcing, property management, and valuation.
“We’ve had a laser-focused commitment to this specific asset class since the fund’s inception, and Covid-19 was a natural stress test for the portfolio.” We were able to distribute a cash-on-cash return of 7.7% annually by making the right investments that deliver value to our investors. We were able to weather the global macroeconomic challenges by having a solid strategy and working with the right partners, and we can now focus on the fund’s continued growth,” Lahori added.
The UAE retail e-commerce market reached a record $3.9 billion in 2020, a 53 percent year-on-year increase driven by the Covid-19-led digital shift, new analysis from the Dubai Chamber of Commerce and Industry has revealed. E-commerce accounted for 8 percent of the retail market during the same year, the data showed.
In addition, the current rising inflation rates combined with global macro instability has seen a rise in demand for the real estate investment sector which has traditionally been viewed as a stable base.
The Manrre Fund’s portfolio includes logistics real estate, industrial warehouses, and fulfillment centres, all of which are fueled by this continued growth.
As part of its ongoing evolution, Manrre deposited its shares in the Nasdaq Dubai CSD in 2020. Nasdaq Dubai’s CSD facilitates a wide range of corporate actions, including shareholder payments, and maintains close ties with international CSDs. The ownership of all Manrre shares will be transferred off-exchange within the CSD.