Binghatti Capital, the investment management arm of Dubai developer Binghatti, said on Tuesday that its Binghatti Pinnacle Development Fund delivered a 194% net internal rate of return to external investors after completing its investment strategy.
The fund also returned a net equity multiple of 2.3 times, the company said in a statement. The returns are net of fees, fund expenses and carried interest, it said.
Binghatti Capital, which is regulated by the Dubai Financial Services Authority (DFSA), raised about $29 million for the fund.
The fund followed a single-asset, build-to-sell strategy on a mixed-use development of 178 units. The project reached a gross development value of about $115 million, with contracted sales of more than $90 million.
About 90% of the units were sold before the project was completed, the company said.
The fund has completed distributions to its limited partners and is now in formal liquidation, subject to remaining regulatory and administrative requirements.
Ahmed Binghatti, executive chairman of Binghatti Capital, said the result “marks an important milestone in building Binghatti Capital’s track record.”
Shehzad Janab, senior executive officer of Binghatti Capital, said maintaining execution momentum “through heightened regional uncertainty was central to achieving this outcome.”
