Rising demand for low-cost housing pushes HSBC's MENA team into UAE

HSBC Asset Management's Middle East and North Africa (Mena) team have increased their exposure to the United Arab Emirate (UAE)'s unloved real estate stocks because of increasing demand for low-cost housing.

Portfolio manager Andrew Brudenell, who works alongside Andrea Nannini on the seven-month-old Mena Equity vehicle, says commercial property development in the area has been hit by the Dubai bubble. However, many companies are also heavily involved in basic housing to accommodate the region’s growing population, which has provided a counterpoint to the commercial property downturn. The team has built up a combined position of more than 4% in UAE real estate firm Aldar Properties and Moroccan developer Emaar Properties. Brudenell says both firms have large social housing capabilities which...