BUSINESS MODEL
Fund Structure
The structure of Arabia Capital Real Estate Focus Fund is designed to ensure robust management, operational efficiency, and strategic oversight, maximizing value for our investors. Our fund operates through a well-defined framework that involves key parties, each playing a crucial role in the fund's success.
Fund Manager
Responsible for Developing Investment Strategy, Fund Raising, Investment selection and Due Diligence, Portfolio Mgmt, Asset Mgmt, Risk Mgmt, Reporting & Communication, Compliance and Regulatory oversight, Exit Strategy and Liquidity Mgmt.
Fund Advisor
Responsible for to provide expert advice on investment strategies, Portfolio Mgmt, and other related matters.
Investors
ARABIA CAPITAL
INVESTMENT FUND
Investment
Fund Admin
Responsible for Fund Accounting, Investor Services, Compliance & Regulatory Reporting, NAV Calculation, Fund Operations, Audit Support, Risk Mgmt, Technology & System, Client Services
Fund Asset Mgr.
Responsible for actively managing the fund assets
Fund Governance
Ensuring Robust Management and Maximized Investor Value
The structure of the Arabia Capital Real Estate Focus Fund is designed to ensure robust management and oversight, maximizing value for investors. At the core of the fund is Arabia Capital Fund, which operates through two primary entities: VCC Singapore and the Investment Company DIFC Dubai. The fund is managed, administered, and custodied by BugleRock Capital Pte Ltd based in Singapore and BTA Finance Limited in Dubai, ensuring professional and regulatory compliance. Supporting the fund's operations are various advisors and committees, including an auditor, legal advisor, investment committee, and fund advisor, all contributing to the strategic and operational guidance. Investors, unit holders, and lenders engage directly with the fund, benefiting from a well-structured and transparent investment process. The fund's portfolio is managed centrally, ensuring that investments are strategically aligned and effectively managed to achieve optimal returns. This structure ensures a balanced approach to governance, risk management, and investment performance.
FUND
Allocation of Funds - 80/20 Model
Off Plan Portfolio – 80%
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Build-to-Sell Project – Land acquisition level to handover.
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The strategy focuses on asset development and successful exit
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Deals with de-risked Sales and construction risks
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Capital deployed on the Build-to-Sell strategy typically invested for 36 to 48 months
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IRR 25%+ & MOIC 2.0
The Arabia Capital Real Estate Focus Fund employs an 80/20 allocation model, dividing investments between off-plan build-to-sell projects and last-mile real estate projects and refurbishments.
Last Mile Portfolio – 20%
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Investments in refurbishment properties / last mile projects real estate
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The strategy will also improve underperforming assets
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Use of strategic leverage to enhance returns
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Distributions post construction & Sale will be to investors
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Capital deployed invested for 24 to 36 months
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IRR 25%+
