New Shariah Compliant Property Fund Launched

Stephen Harris

6 June 2005

HSBC Amanah has launched a second Shariah compliant real estate investment opportunity, the HSBC Amanah Aqar Income Fund, which aims to provide a high return on investment as well as capital preservation. Falcon Real Estate Investment Company and NGP Capital Partners have been selected as the asset managers who will concentrate principally on properties leased on a long-term basis to investment-grade tenants primarily in North America. The minimum investment will be $50,000. HSBC hope that a return after fees of around 7-8 per cent per annum will be achievable immediately and that over the recommended 5-7 year holding period annualised returns of 8-10 per cent inclusive of capital gains on properties will be achieved. Redemptions from the fund are not possible as it is closed-ended. The first HSBC Shariah compliant real estate product, the Amanah Global Properties Income Fund, was launched in November 2002.