Alykhan Lalani’s Insights on
Building Wealth through Real Estate
Investing in real estate is a complex and long-term endeavor that attracts numerous entrepreneurs seeking their niche. However, how can one build wealth and thrive in this vast multi-billion dollar business, with its multitude of participants? Based on our combined knowledge ground in the real estate, investment banking, and wealth management industries, we would like to share our time-tested strategies and proven insights for achieving financial success through real estate investments.
In 2004, we successfully established Intouch Capital, a real estate company operating across the Middle East and Africa. Intouch Capital became a leader and highly regarded asset management company. Over the years, we realized the need for investments in challenging geographic climates which led us to the establishment of Africa Capital (AFCAP) in 2015.
Here are the key strategies that help us over the years to navigate the complex landscape of the real estate sector and establish a solid foundation for long-term prosperity.
Enhancing Wealth Through Opportunity
One man’s crisis is another’s opportunity. While some may call this vulture capitalism, we call it a deal. The ability to recognize the opportunities before they become mainstream is the main key to success in every single industry. A notable example that showcases this principle is our acquisition of a residential building in Dubai. As the residential market continued to rise in price across Dubai, we felt that there was a distinct lack of housing available to the middle market segment and felt that this product was perfectly suited to this group, both from a pricing and location perspective. As a result, a tenant of this building is currently in place at an 18% yield against cost.
Clients’ Orientation
Demonstrating a strong dedication to clients entails more than just upholding integrity, delivering on promises, and achieving profitable results. It involves identifying and offering unique value propositions that set you apart from competitors. By setting new standards in client relationships, your company will ascend to a leading position in the industry.
Intouch Capital once participated as part of a consortium of joint venture partners to secure an entire building in Doha on a pre-launch discounted basis. The strategy behind the transaction was to piggyback on the official launch and sell to the retail market on an individual basis. Upon official release to the public, the building was sold out within two weeks to a group of individual investors. Consequently, the net return to the investors was 68% over four months.
The Importance of Research
Even after attaining a certain level of success, it remains crucial to keep an eye peeled in the ever-evolving real estate sector. Intouch Capital encountered a prime example of this when we made a bulk purchase of commercial office space at favorable terms with the intention of leasing and selling it in a yield-compressed market. However, within three months of making the acquisition, we felt that the developer was shifting their parameters and that the market was rising at an alarmingly speculative pace. Thus, we decided to exit the market and were able to sell the space on a floor-by-floor basis within two months with competitive pricing. The transaction led to a net return of 52% over a six-month period.
Success Breeds Success
Our greatest asset is our people, and your greatest advantage is the value they will bring to your business. This is why our company only employs the best and most trusted minds in the business. We believe that this strategy has granted us a sterling reputation, helping to forge numerous partnerships, joint ventures, and co-investment transactions with other leaders in the real estate and investment arenas.
About the Author
Alykhan Lalani has a distinguished background in economics and business, currently serving as the Managing Partner at Africa Capital SA. Mr. Lalani embraces philanthropy and is actively involved as a committee member of the Children’s Hope Foundation.
My channels
On the news
Inquirer USA — Moving Employees to the Middle East & Africa: 3 Proven Ways to Simplify Relocation.
CEOWorld Magazine — Unlocking Real Estate Investment Opportunities in the Middle East and Africa with Alykhan Lalani & Kavit Handa.
Business Matters — Alykhan Lalani’s Investment Company Expands Business in the UK.
IBTimes — Transforming The Future Of Investments: A Closer Look At InTouch Capital Switzerland
My tip
Looking to gain valuable insights into real estate trends in Dubai? Look no further than my friend Kavit’s Medium blog, where he delves deep into the intricacies of the dynamic Dubai real estate market. With his expertise and experience, Kavit Handa provides comprehensive analysis and understanding of the latest trends shaping the industry.
