London based investment company Lewis Charles Securities has launched a fund to invest in residential property in Abu Dhabi.
The Lewis Charles Abu Dhabi Property Fund will be a three year closed-ended privately held partnership investing solely in the Abu Dhabi property market.
It seeks to raise $100m (£67.7m) from investors with a minimum investment requirement of $75,000 (£50,768) for individuals and $250,000 (£169,227) for institutions. The target internal rate of return is more than 25% a year.
The fund will focus predominantly on mid to high-end properties 'which will be attractive to both end users upon completion and investors during the off-plan stage'. The fund will seek to generate capital gains by trading properties to be built over the next three years in Abu Dhabi.
The fund's manager will be Lewis Charles Securities which has more than $132m (£89.3m) in assets under management.
It said it will have a strong regional focused board which will take advantage of the property investment opportunities in Abu Dhabi caused by a chronic undersupply of housing and the population boom.
Stavros Loizou, investment manager, said: 'This fund presents investors with an opportunity to invest in an acute supply/demand imbalance opportunity over next 3 - 5 years in a politically stable and business friendly environment with the highest growth rates and GDP per capita in the world.
'Colliers International projects the acute supply/demand imbalance to be a shortfall of 100,000 units over the next two years. Rental occupancy across the city is currently in excess of 98%.'