A Dubai real estate investment fund has delivered a 194% net internal rate of return, with around 90% of its project’s units sold before construction was completed.
Binghatti Capital Limited, a Dubai Financial Services Authority (DFSA)-regulated investment management firm, announced the completion of the investment strategy for its Binghatti Pinnacle Development Fund LP.
The fund raised approximately US$29 million and delivered a 2.3x net equity multiple to external investors, after applicable fees, fund expenses and carry.
Its project achieved a gross development value of approximately US$115 million, with contracted sales exceeding US$90 million.
Off-plan sales support project performance
The fund followed a single-asset development strategy, building a mixed-use project comprising 178 units for sale.
Around 90% of the units were sold before the project was completed, highlighting the role of off-plan sales in the development’s performance.
Ahmed Binghatti, Executive Chairman of Binghatti Capital, said: “Binghatti Pinnacle demonstrates how our development expertise and investment management capabilities can work together to create value for investors. Our focus is on selecting the right opportunities, delivering with discipline and translating development success into realised investor returns. This result marks an important milestone in building Binghatti Capital’s track record.”
Fund enters formal liquidation
With its investment objectives achieved and distributions completed for limited partners, the fund is now undergoing formal liquidation, subject to the remaining regulatory and administrative requirements.
Shehzad Janab, Senior Executive Officer of Binghatti Capital, said: “Successful development investing requires discipline across the entire investment lifecycle—from underwriting and capital deployment to construction, sales and distributions. Pinnacle’s 194% net IRR and 2.3x net equity multiple demonstrate both the value created and the speed at which capital was returned to investors. Maintaining execution momentum through heightened regional uncertainty was central to achieving this outcome.”
Binghatti Capital manages real estate investment strategies and provides investment and advisory services across real estate, private credit and capital markets. The firm operates under the regulation of the DFSA.
The company cautioned that past performance is not indicative of future results and that the fund’s returns should not be taken as a guide to the performance of future investments or strategies.
