Gulf Petrochem to Launch First Indian Focused Real Estate Fund Under DIFC's Exempt Fund Regime



  • GP commits US$10 million as seed capital to Fund; aims to raise US$100 million
  • DIFC's Exempt Fund tailored to provide professional and institutional investors with unique and tax efficient access to diversified portfolio of professionally managed 'Grade A' real estate assets in compliance with the Indian Government's Foreign Direct Investment (FDI) programme

Dubai, UAE- 28 April 2015: Gulf Petrochem group (GP) has announced the inauguration of GP Property Fund (CEIC) Limited, domiciled in Dubai International Financial Centre (DIFC). This is the first DIFC domiciled fund focused on Indian real estate and marks the launch of a new area of focus for GP in the asset management space.

The fund, which is sponsored and driven by GP, will be managed by Gateway Investment Management Services (DIFC) Limited (Gateway). In addition, the international real estate experts Cushman & Wakefield have been retained as property consultants for the Exempt Fund.

Elaborating on their plans, GP's Managing Director Sudhir Goyel said: "The time is now right to leverage Indian real estate assets for the benefit of our investors. GP has committed US$10 million as seed capital to the Fund that aims to raise US$100 million."

Guaranteeing tailor-made solutions for professional and institutional investors, the DIFC Exempt Fund provides unique and tax efficient access to a diversified portfolio of professionally managed grade 'A-level' real estate assets. These assets have been duly approved by by the Indian government and work in compliance with the Foreign Direct Investment (FDI) programme. For decades, India's real estate sector has provided valuable potential for a diversified asset model and has delivered strong performance, attractive yields, and diversification benefits.

Speaking about the latest development, DIFC Authority's Chief Strategy and Business Development Officer, Chirag Shah said: "The DIFC Authority would like to congratulate Gulf Petrochem on the launch of the GP Property Fund. Allowing funds to be established and launched conveniently confirms DIFC's commitment to providing sophisticated investors and their advisors with innovative and tailored solutions. The DIFC is a jurisdiction with internationally recognised regulations, favourable taxation and ease of establishment. Based on these key factors and our associations with clients such as Gulf Petrochem and Gateway Investment Management Services, we believe the DIFC can and will become the Fund Domicile of choice in the region."

The investors in the region perceive the Indian real estate market to be well positioned for growth with a new government in power, which is committed to increase foreign investments in the country.

Fund Director Shahin Alam pointed out that the Fund is structured as a closed ended investment company (CEIC) in the DIFC that aims to encourage foreign investments into India by high net worth individuals and institutions, seeking to create value real estate exposure.

Similarly, Dinesh Bhasin, Fund Director at GP, added: "The Fund's investment objective is to primarily invest in equity, equity related or debt securities in real estate and real estate-related projects based in India. Specifically, the Fund will target investments in commercial, hospitality, residential and retail projects within proven geographies."

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