HSBC's Islamic financial services arm HSBC Amanah said on Sunday it had launched a real estate investment fund worth up to $200 million for rich individuals and institutions. The sharia-compliant HSBC Amanah Aqar Income Fund concentrates on properties leased on a long-term basis to investment-grade tenants primarily in North America.
The fund, which requires a minimum investment of $50,000, aims to provide annualised returns of 8-10 percent after fees, inclusive of capital gains on properties, over a recommended five to seven year holding period, an HSBC statement said.
A bank spokesman said the fund will issue a $100 million first tranche, and a second $100 million tranche when and if the first one is fully subscribed.
It follows HSBC Amanah Global Properties Income Fund launched in November 2002.
"The fund is closed-ended, meaning that investors cannot withdraw funds before five years," the spokesman said.
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