Portfolio mandate

Five apartments, two districts, one Dubai allocation.

A southern-German family office wanted to deploy AED 12M into Dubai as running diversification — with hard yield floors, defined tower-selection criteria and a realistic four-quarter build-out plan.

Client
Family Office · Munich
Mandate duration
14 months
Capital deployed
€3,020,000
Locations
Dubai Marina · Business Bay

Strategy

The family office already held a Western-European residential portfolio with gross yields around 3.5 %, and wanted a deliberately non-euro-correlated yield class with running distributions. We defined a hard floor of 7 % net rental yield, diversification across at least two micro-locations, and a maximum 18-month build-out. Off-plan was excluded — cashflow had to flow from quarter one. From roughly 240 pre-filtered resale units we finalised five towers across Marina and Business Bay, each with a verifiable rental history, a clean service-charge ledger and a modelled rent reserve.

Dubai Marina from above — yacht harbour and high-rises in evening light.

Ledger

Key metrics

Capital deployed
AED 12.0M≈ €3.02M
Net rental yield
8.2 %portfolio-weighted average
Build-out period
14 Mo.mandate to fifth handover
Capital growth YTD
+11.4 %DLD index vs. handover

Chronology

Mandate timeline

  1. Month 1

    Mandate definition and tower cluster

    Initial workshop in Munich, agreed the yield floor (≥ 7 % net), the location clusters (Marina + Business Bay) and the hard exclusion criteria (no towers above AED 22/sqft service charges, no open DLD disputes).

  2. Month 2

    Long-list shortlist and first viewing trip

    From 240 RERA-listed units we shortlisted 28 candidates. A three-day viewing trip in Dubai allowed the principal to physically inspect 14 apartments.

  3. Month 3

    First acquisition — Marina, 2BR view unit

    First acquisition in an established Marina tower at AED 2.35M with a sitting tenant at AED 195k p.a. — gross yield 8.3 %, lease assignment effective on DLD transfer date.

  4. Month 5

    Second and third acquisition — Business Bay

    Two studios in a serviced Business Bay tower (AED 1.10M and AED 1.15M) with active short-stay licences — modelled net yield 9.1 % at 78 % occupancy.

  5. Month 8

    Fourth acquisition — premium Marina tower

    A 3BR corner unit in a premium Marina tower (AED 4.2M) for long-let to expat families. Net yield lower (6.8 %), but capital-growth profile markedly above the Marina average.

  6. Month 11

    Property-management roll-out

    Leasing and management handed to a RERA-licensed manager under Heinzmann supervision. Quarterly reporting to the family office: occupancy, cashflow, service-charge movements.

  7. Month 14

    Fifth acquisition and portfolio close-out

    Final acquisition (Business Bay 2BR, AED 2.2M) closes the portfolio. Weighted net yield calibrated to 8.2 %, cashflow distribution from quarter one of full occupancy.

Outcome

Outcome

After 14 months the portfolio is fully built, all five units leased, the calibrated net yield sits at 8.2 % — just above the 7 % floor and 130 basis points above original modelling. The DLD index has risen 11.4 % over the mandate window, lifting the book value of the allocation to roughly AED 13.4M. The family office has rolled the mandate into a standing portfolio-management retainer and is reviewing a second tranche for 2027.

Lessons

What we learned

  1. A hard yield floor disciplined the entire search — we walked away from 12 otherwise attractive units because their modelled net yield landed below 7 %.

  2. Diversifying between Marina (long-let) and Business Bay (short-let) smoothed cashflow and eliminated concentration risk on a single tenant profile.

  3. Quarterly reporting calibrated to European family-office conventions was the decisive factor in converting the mandate into a multi-year retainer.

Client voice

Client voice

We ran parallel acquisition mandates across four markets — Dubai was the only one where original modelling turned out to be conservative rather than optimistic.

Managing Director, Family Office, Munich

Closing

Eight years. Twelve mandates. One call.
Heinzmann · Partners · Dubai

An initial conversation in German or English — personal, confidential, no sales pressure. Usually within 48 hours.

Let us speak

Office
DIFC · Gate Village · Dubai