In conversation with Ronnie Veen and Vincent Berk from Jupiter Capital

In a world where the certainty of returns from traditional Dutch real estate is slowly disappearing, there is a glimmer of hope on the Arab horizon. At least according to founder Ronnie Veen and partner Vincent Berk. According to them, Dubai is the place to be for real estate investors. With Jupiter Capital they introduced the Dubai fund: "The Dubai fund is actually for everyone who is looking for returns, but with a healthy spread of risks."

Following the successful placement of Dubai Fund 1, Jupiter Capital is pleased to present Dubai Fund 2. This mainly focuses on investing in villas and apartments to be transformed at prime locations. These existing villas and apartments are often built in Arabic style, while the demand for the modern Western style is increasing. With the fund, Jupiter Capital buys villas and apartments in Arabic style and transforms them to Western standards, and then resells them at a profit. According to Ronnie and Vincent, this is a way that gives investors unique access to Dubai's growth market. The real estate market in Dubai is often difficult or not at all accessible to private investors. Often because they do not know the roads, or because it is complicated to get the right real estate offered in the right locations.

Ronnie, you are one of the founders of Jupiter Capital, what did you do for this?

Ronnie: ''I worked as a financial director at an investment company for ten years. I have often invested in real estate in Dubai. In the 10 years that I have been active in Dubai, I have seen the city grow and professionalize. I know the locations there and have made many contacts. At a certain point the time came to start an investment fund of my own.”

What do you invest in with the Dubai fund?

Ronnie: ''We buy older villas and apartments at prime locations. These existing villas and apartments are often built in Arabic style, while the demand for the modern Western style is increasing. We transform the real estate to Western standards.''

vincent: ''In Amsterdam, The Hague and Rotterdam, many investors have bought old buildings in recent years, renovated them and sold them or re-rented them. In the Netherlands this has stopped due to all the new rules that have been introduced. In Dubai we are actually doing the same thing now. We buy villas and apartments built ten, fifteen years ago in the Arabic style. However, there is a lot of demand for real estate in the more modern, Western style. So we buy old apartments and villas, refurbish them and transform them into a modern style and then sell them again."

Why Dubai?

Ronnie: ''Dubai has been an attractive city to invest in in recent years because of the tax and economic climate. Fiscally it is extremely beneficial because, for example, as an employee you do not pay income tax. If you make $100.000, it's still $100.000 there. As a company, it also has a favorable business climate, due to the low tax rates to date. They will introduce this, by the way, but that is 9%. In the Netherlands that is at least 20%. You notice that entrepreneurship is really stimulated here. Different than in the Netherlands. As a result, more and more real estate investors are moving to our fund. In the Netherlands, legislation is becoming increasingly strict; think of the rent ceiling and the increased box 3 tax. Dubai is also a growth market, also because the government has come up with a very clear plan. For example, they want to double the number of inhabitants and double the hotel sector by 2040. It is also very safe. Even petty crime is rare there. And with the exception of two hot summer months, the climate is also better. In addition, it is very service-oriented. In Dubai, the answer 'no' doesn't really exist."

vincent: ''It is also very conveniently located geographically. It is located between Asia, Europe and Africa. That is also why Dubai International Airport is one of the busiest airports in the world. And also the port of Jebel Ali, which is one of the largest container ports in the world, due to its location. Dubai is currently seen by UBS as one of the best cities to invest. Every year, the leading UBS publishes the global real estate bubble index. Dubai property prices are rated globally by UBS as quite fairly appreciated. Real estate prices in Dubai are currently about 25% below their 2014 peak, adjusted for inflation.'' 

"Jupiter Capital has strong local partners and offers a unique gateway to invest in high-quality real estate in Dubai."

Who is the Dubai Fund intended for? 

Ronnie: ''The Dubai Fund is actually for anyone who is looking for returns, but with a healthy spread of risks. Anyone from € 100.000 can invest with us. They can be small investors, but we also have larger investors on board with a million plus. These types of investments fall outside the supervision of the AFM. We do have a registration with the AFM and, which many people do not know, we also have to report. We do fall under the AIFMD light scheme.”

What makes you distinctive?

vincent: ''If you want to purchase real estate as an investment in the Netherlands, it is quite simple. The distances are small, you know the market and the real estate agents. Dubai, on the other hand, is ea market that is often difficult to access, partly due to the distance and the lack of local knowledge. If you want to buy real estate there, you must of course first get to know the market well. Jupiter Capital has strong partners locally and offers a unique gateway to invest in high-quality real estate here."

Ronnie: ''Transparency, efficiency, reliability and short lines are ours keywords. For example, we are transparent in our cost structure. Compared to other funds, we do not charge any start-up costs or structuring costs. We also always invest at least 5% with our investors. We also work with so-called capital calls. We only request the investment amount when we actually purchase the property. This makes the purchasing process transparent and our investor knows exactly which projects we purchase. The money is therefore never in our account without an investment proposal. This distinguishes us from other real estate parties. We have also built up good relationships in Dubai over the years. I visit there regularly and view the property myself before making an investment. This means I know exactly what the prime locations are, where demand is high and what the right parties are to collaborate with. This also applies to reliable brokers, for example. We do not work with brokerage, which means they are very motivated to buy and sell as best as possible. ''

What return can you expect as a private investor?

Ronnie: ''We have three scenarios. Conservative 6%, realistic 9.8% and optimistic 16%. If the market remains the same, we are approximately at 9.8%.”  

What will you present at MASTERS EXPO in December? 

vincent: ''We present a number of beautiful models of our current projects in Dubai. In addition to the team at Jupiter Capital our partner from Dubai will also be present. We also show images of purchases with the first fund on the stand through before and after photos of the renovation. All while enjoying a drink, of course." 

MASTERS EXPO 

Jupiter Capital will be present at MASTERS EXPO – The Magical Edition. Make in hall 10 on stand number 1500 get to know the team. Would you like more information about the Dubai Fund? Visit Jupiter Capital's website here.