DUBAI (Reuters) - The National Bank of Abu Dhabi NBAD.AD and British Investment bank Evans Randall will invest about $20 million (12 million pounds) in a European property fund, a UAE newspaper reported on Sunday.
NBAD and Evans Randall in December 2008 announced plans to set up a joint venture to provide mezzanine investments in European real estate, primarily in the UK and Germany.
The property fund plans to raise as much as $500 million by next year from institutional and individual investors in the Gulf, Shiraz Habib, the head of product development at NBAD’s investment banking group, was quoted in The National as saying.
The two banks would initially invest about $20 million of their own capital and the fund would sell 80 percent of its initial capital to investors, Habib said. Investing in more mature markets, with less volatility than emerging markets, would help diversify the NBAD’s investments, Habib said.
Reporting by Nicolas Parasie; Editing by Nick Macfie