What's Happening?
Coinvesting Capital Ltd, a DFSA-regulated asset manager based in the Dubai International Financial Centre (DIFC), has announced the launch of the COINVESTING BREAD REAL ESTATE FUND L.P. This fund is established
as an Exempt Fund under DFSA regulation, with a parallel feeder vehicle, Coinvesting Bread Real Estate Fund SCSp, set up under Luxembourg law. The Luxembourg vehicle is in the process of registration with the CSSF, although it is not yet supervised by the CSSF. The fund is managed by CAIBUO CAPITAL S.à r.l., a CSSF-licensed management company. This dual structure aligns with two of the world's most established financial frameworks, marking the first regulated real estate fund dedicated to the UAE market under a DIFC–Luxembourg framework. The initiative aims to integrate the UAE's dynamic property sector into the global market, offering a regulated platform that aligns with international standards.
Why It's Important?
The launch of this fund is significant as it underscores the UAE's growing role as a credible destination for institutional capital. By combining regulatory oversight from Dubai and Luxembourg, the fund provides a structured approach to investing in the UAE real estate market, aligning with international standards. This development is part of a broader trend of increasing foreign investment in the UAE, driven by record levels of real estate activity, government reforms, and sustained foreign inflows. The fund's establishment further positions Dubai and Abu Dhabi as strategic markets for global investors, enhancing the UAE's status as a financial hub and a destination for cross-border investment.
What's Next?
The establishment of this fund is expected to attract more institutional investors to the UAE real estate market, leveraging the dual regulatory framework of DIFC and Luxembourg. As the fund becomes operational, it may lead to increased real estate activity and further integration of the UAE market into the global financial system. The involvement of experienced directors from Bread Capital Ltd, such as Michael Ruben and David Szerer, is likely to strengthen the fund's governance and appeal to investors seeking a combination of regional knowledge and institutional discipline. The ongoing registration process with the CSSF will be a key step in the fund's development, potentially opening new avenues for investment once completed.
