Emirates Tarian to launch $400 mln Asian fund

SINGAPORE (Reuters) - Singapore-based Emirates Tarian Capital will launch a Sharia-compliant investment fund worth over $400 million targeting Asian properties across all sectors, its managing director said on Wednesday.

"It will look at properties across the region. It will look mostly at commercial and residential and not so much at hospitality because of the sharia compliance (requirements)," Kunalan Sivapuniam said in an interview at the Reuters Real Estate Summit in Singapore.

Sharia or Islamic law prohibits the leasing of real estate for purposes such as alcohol production or pornography.

The investment firm is 60-percent owned by Emirates Investments Group, one of the investment firms such as Dubai World and Istithmar to have emerged from the oil-rich United Arab Emirates.

Kunalan said the fund would be managed by an independent fund manager with listed property trusts in Singapore.

"We make most of our investments through joint ventures," he said.

Set up two years ago to channel funds from Middle East private investors into Asia, the boutique investment firm has so far raised funds for Asian projects worth up to S$600 million ($390 million).

Middle East investors are seeking returns on equity on their Asian investments of above 20 percent, he said.

"They can easily get 30 percent returns from the Middle East," he said.  Continued...