Binghatti’s Pinnacle fund closes with a net return of 194 per cent

The property fund Binghatti Pinnacle Development Fund LP has concluded its investment strategy with a net internal rate of return of 194 per cent and a *multiple* of 2.3 times the capital invested for external investors. This was announced on 27 October by Binghatti Capital Limited, a management company regulated by the Dubai Financial Services Authority (DFSA), which specified that the results are calculated net of applicable fees, fund expenses and the performance fee payable to the manager. The vehicle raised approximately 29 million dollars, earmarked for a transaction focused on a single mixed-use property development, in line with a development-to-sell strategy. The development comprises 178 units and, according to figures released by the company, has a gross development value of approximately 115 million dollars.

Around 90 per cent of the units were sold before construction was completed, whilst the value of contracted sales exceeded 90 million dollars. The company attributes this result to a combination of investment management, demand for off-plan properties and the execution capabilities of the group’s development platform. The two indicators reported describe different aspects of the transaction: the net multiple of 2.3 times measures the ratio of capital returned to capital invested, whilst the internal rate of return also takes into account the timing of cash flows. However, the press release does not specify the total duration of the investment nor the schedule of payments and distributions, elements necessary for a more comprehensive assessment of the return.

For Ahmed Binghatti, Executive Chairman of Binghatti Capital, the transaction demonstrates how expertise in property development and investment management can combine to create value. The result, he emphasised, represents “an important milestone in Binghatti Capital’s track record of achievements”. Shehzad Janab, Senior Executive Officer of the company, highlighted the firm’s control over the entire investment cycle, from initial valuation and capital deployment through to construction, sales and distributions. The return achieved reflects, in his words, both the value created and the speed with which capital was returned to investors. The manager also cited consistent execution, against a backdrop of increased regional uncertainty, as one of the key factors determining the outcome of the transaction.

Having achieved its objectives and completed distributions to subscribers, the fund is now in the process of formal liquidation, subject to the completion of the remaining regulatory and administrative formalities. Binghatti Capital is the group’s arm dedicated to investment management and capital markets. The company operates in property strategies and provides investment and advisory services in the real estate, private credit and financial markets sectors. The Pinnacle case forms part of the development of this business, which combines asset management with the group’s property expertise.