The fund aims to develop the Wonderland Project on an estimated area of 230,175 square metres.
Tuesday 18, December 2018
Ento Capital, a regulated entity by the Dubai Financial Services Authority (DFSA), launched Ento Wonderland Fund (CEIC), which is a Shari’ah-compliant income generating property fund. The Fund size, an estimated AED 702 million AED has a 15-year tenure with the option to extend for additional years.
The Fund was launched in the presence of Dr Omar Abdelkafy, head of the Shari’ah committee, and Salman Jaffery, the representative of DIFC, in addition to several prominent businessmen in the UAE and GCC, from both public and private sectors.
Ento Wonderland Fund will be responsible for the development and operation of Wonderland project on an estimated area of 230,175 square meters, while Ento Capital will manage the Fund to offer an increased protection to its investors according to the regulations and Legislations of the DFSA’s rules.
The Fund’s investment objective is to develop the project entirely and generate consistent annual revenues to the investors, either by operating or sub-leasing the project’s components. The project, which was designed by Engineer Adnan Saffarini Office, is a multi-component development which brings together an open retail promenade, and entertainment, hospitality, marina and amphitheater components in order to ensure a complete leisure experience for its visitors.
“Investment in real estate assets may weaken but it is one of the most profitable types of investments. The investment is not limited to professional; a large segment of society can generate incomes through real estate investment, as they venture to generate additional income. However, the real estate activity is one of the most complex activities, but in the Arab world—and the Arabian Gulf in particular—the real estate sector is one of the most secure and stable sectors, only when managed by specialised companies that follow the best standards and deal with the variables through investment strategies of a flexible, dynamic and transparent nature,” said Haitham Al Masri, CEO of Ento Capital.
The strategy of the Fund is to distribute constant dividends payouts to its investors, as it applies high standards of corporate governance and reporting scheme, and the Fund has many key strengths: it is a regulated Shari’ah-Compliant fund and is managed by a DFSA fully licensed company located in the DIFC.In addition, it is a flexible Fund structure with a mix of developmental components, and has a constant dividend distribution.
The Wonderland Project is set to be developed by Ento Wonderland Property Fund (CEIC) in three phases, and each phase will start its operations accordingly as per the development programme. The Project’s development phases will overlap, and the order of execution might change depending on the developments regarding the ground and market conditions.
The Wonderland Dubai project is attractive to investors because of its prime strategic location, its waterfront and the surrounding areas including hospitality, entertainment and retail components like hotels, restaurants and cafes. The Project also benefits from Dubai Municipality’s full support, and the Fund's flexibility allows the shareholders to exit via the Sale of Shares before the fund maturity date.
“Ento Capital has indeed used its over-20-year experience to establish the real estate investment funds. Despite the challenging economic situation, Dubai and DFSA have introduced legislations and regulations that bolstered the investment climate," said Abdullah AL Fouzan, chairman of Ento Capital, adding that the investment opportunity is a continuation of a business bound to put the interests of its customers first, as it offers low risks, high revenues and spectacular locations.
Al Fouzan added that Ento Capital will soon launch a real estate fund to develop a distinctive area in the city of Jeddah, Saudi Arabia, solidifying the firm’s further expansion into the region, as well as diversifying and expanding its customer base, as a result of the political and economic will in both Saudi Arabia and the UAE and the desire to achieve economic integration and make the two countries a joined market.
Ento Capital, a Dubai International Financial Centre-based investment company, has announced that construction on the mixed-use Wonderland project in Dubai is expected to start in Q1 of 2017.
In a statement, the financial firm said that reconstruction costs on the long-gestating project will be between $440 million and $490 million. Located on Al Riyadh Street, near Dubai Creek, the 2.4 million square foot Wonderland development will be executed in phases over three years.
The project involves the redevelopment of the existing Wonderland theme park, which opened in 1996 but has been closed for several years.
Once complete, the project will comprise of residential apartments, retail and food outlets, amusement parks and a cultural centre. Ento Capital added that it was in the midst of obtaining preliminary approvals from Dubai Municipality and other relevant authorities.
“The project will be one of the most attractive entertainment destinations in the region, attracting visitors from all over the world and enhancing the status of the emirate on the world’s map of leading entertainment centres. The location of the project is a prime factor in appealing to visitors with a wide array of amusement options”, said Hayssam El Masri, CEO of Ento Capital, who was quoted in a CPI Financial report.
He added that the company will be entering into a number of strategic partnerships with world-class real estate firms and brands.
The project’s master planning and concept design was finished in 2013, by FORREC, the Toronto-based entertainment design firm.
In August 2008, Emirates 24/7 reported that Wonderland would be redeveloped into a smaller-scale version of the Disneyland and Universal Studios theme parks, for an estimated cost of $167.55 million.
El Masri said that Dubai would continue to provide opportunities for investors from all over the world due to its transparent legislative environment, facilities and incentives in all sectors. He anticipated more foreign investment coming into the emirate over the coming years, particularly from companies looking to explore new markets.
“It is marvellous addition to the entertainment facilities in the UAE and a brilliant destination representing a unique and lively entertainment choice. It has many options for visitors, making it the ideal place for all family members for entertainment and dining… In all our investments, we create an environment that combines the elements of active and entertainment for a happy life,” he said.