TNI is one of a few investment banking firms in the UAE with a specialized, fully dedicated real estate team offering comprehensive solutions in investment banking, asset management, development and international investing. In its third year of operation, our Real Estate Division has contributed significantly to the firm’s bottom line. In recognition of its many achievements, the division was awarded in December 2006 the prize for “Best Investment House in the UAE” in real estate by London-based ICG.

The division provides clients with tailored solutions to assist them in achieving their objectives in this growing sector. Its dedicated team of real estate professionals has over 80 years of combined experience in providing comprehensive real estate solutions. Through Colliers International, a wholly owned subsidiary of TNI, the firm also provides services in property management, development consultancy, valuations and feasibility studies as well as sales and leasing.

Services offered within investment banking include the preparation of feasibility studies, financial and legal due diligence, capital structure optimization, valuations and raising of private and public capital.

The division is currently building its own portfolio of project development. In November 2006, TNI acquired two plots of land at Capital Centre in Abu Dhabi to develop two buildings; a 24-storey office tower and a 26-storey serviced apartment facility. Capital Centre is situated at the heart of the Abu Dhabi National Exhibition Centre (ADNEC), a U-shaped, state-of-the-art conference and exhibition multiplex. TNI is currently in the process of developing the two plots of land at a cost of about AED 600 million.

In April 2007, TNI also acquired the 120-room Mafraq Hotel in Abu Dhabi, previously owned by the Tourism, Development and Investment Company (TDIC). Situated on a plot of land of around 28,000 square meters, the hotel was initially opened in 1996 and then refurbished in 2006. TNI is now working on constructing a new adjoining 115-room wing and renovating the existing property. TNI’s Real Estate Division has also launched a number of funds since its inception.

The Fund invests in new property developments and the repositioning and refurbishment of existing properties across the Middle East and North Africa region. The objective of REDF is to focus primarily on investing in the development of real estate projects in strategic locations and high growth areas across all property types including residential, office, retail, hospitality and industrial. Another objective is to invest in opportunistic investments focusing on under-managed or distressed real estate assets with the aim to re-develop and re-position such assets.

REDF targets real estate projects that are generally too small for a large property developer or too large for a small property developer. The Fund sees a great opportunity in this “niche market” with targeted individual projects ranging in size between USD 30 million to USD 150 million per transaction, allowing for a well diversified portfolio investing in 10-15 projects across the target region. Investments will be spread across MENA, India and South Africa targeting emerging and growing property markets and seeking optimum risk adjusted returns.

The Fund was established in November 2005 to make equity investments primarily in closed-ended private equity real estate funds from around the world. REIFF seeks to raise USD 150 million in equity to invest in up to 12 underlying investments. TNI considers the fund as a vehicle that provides high net worth clients and institutional investors with access to institutional real estate markets across the globe through lower, minimum commitments.
REIFF intends to target real estate private equity funds focusing on value-added and opportunistic strategies. It aims to achieve geographical diversification by investing in North America, Europe and the Far East. It also aims to maintain low volatility of returns, exhibit low correlation to equity and debt returns and attain a controlled risk profile.