Binghatti Capital's Pinnacle Fund Achieves 194% Net Return in Dubai

Binghatti Capital Limited, a Dubai Financial Services Authority (DFSA)-regulated investment management firm, has successfully completed the investment strategy for its Binghatti Pinnacle Development Fund LP. The fund achieved an impressive 194% net internal rate of return (IRR) and a 2.3x net equity multiple for its external limited partners, after all applicable fees, expenses, and carry.

Fund Details and Performance

The fund, which raised approximately US$29 million, implemented a single-asset, build-to-sell strategy. It focused on developing a mixed-use project in Dubai comprising 178 units, which generated a gross development value of approximately US$115 million. A significant portion, about 90% of the units, were sold before the project's completion, with contracted sales exceeding US$90 million.

According to Ahmed Binghatti, Executive Chairman of Binghatti Capital, this outcome highlights the synergy between their development expertise and investment management capabilities in creating value for investors. Shehzad Janab, Senior Executive Officer of Binghatti Capital, emphasized that the successful result was due to disciplined investment management across the entire lifecycle, from underwriting and capital deployment to construction, sales, and distributions.

With its investment objectives met and distributions made to limited partners, the Binghatti Pinnacle Development Fund is now in the formal liquidation process, pending regulatory and administrative requirements.