Al Islami US Properties III Fund


Summary Terms:

  • Product: Real estate fund generating income from retail properties in the United States of America ( USA). The fund is denominated in USD with expected semi-annual coupons of 8.25% p.a.
  • Investment Units: 1880 units of USD 25,000 each
  • Minimum Investment Amount: USD 25,000 and multiples thereof
  • Maximum Investment Amount:188 units
  • Investment Period: Assumed holding period is 5 years, from the beginning of June of calendar year 2007 to the end of May 2012
  • Underlying Investments: The fund portfolio comprises of 8 Retail Properties located in three major cities in the United States as follows:

    • Western Hills Marketplace- Cincinnati, Ohio, USA
    • Governor’s Plaza- Cincinnati, Ohio, USA
    • King’s Mall II- Cincinnati, Ohio, USA
    • Montgomery Crossing- Cincinnati, Ohio, USA
    • Tri-County Marketplace- Cincinnati, Ohio, USA
    • Tuttle Crossing - Columbus, Ohio, USA
    • Taylor Square- Columbus, Ohio, USA
    • Coldwater Crossing- Fort Wayne, Indiana, USA

Fees relating to the offering:

  • Arrangement and Placement Fees: 2%
  • Administration Fee: 1.35% per annum based on the higher of either the cost or the book value of the investment to investors.
  • Performance Fee: 20% of the excess of the realized (annualized) return (including current income) over 10% per annum.

Dividend: Semi-annual basis (June and December)

Redemption: No redemption will be allowed

Expected Investment Maturity Date: 31 December, 2012

Fund Manager: Investcorp Bank B.S.C., Manama, Kingdom of Bahrain

Distributor: Dubai Islamic Bank (DIB)

Investment strengths:

  1. Excellent Locations.
  2. Stable Annual Cash Flow.
  3. High Quality and Diversified Tenants.
  4. Institutional-Grade Properties.
  5. Opportunity for Rental Growth.
  6. Strategic Business Plan for Income Growth and Value Enhancement.
  7. Experienced Property Management Team.

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