ENBD REIT (CEIC) Limited (Nasdaq Dubai: “ENBDREIT”), the Shari’a-compliant real estate investment trust managed by Emirates NBD Asset Management, has announced that it has successfully completed deployment of the USD 105 million it raised at listing in March 2017. ENBD REIT’s latest acquisition of The Edge building in Dubai Internet City also utilized its existing Islamic finance facility, meaning that the property portfolio is running at an efficient Loan-to-Value (LTV) ratio of 32%.
Recent acquisitions by ENBD REIT have focused on a diverse range of asset types. In May the REIT acquired Uninest Dubailand, a student accommodation building, from GSA for USD 33 million. In August, ENBD REIT acquired its first development asset – South View School – in Dubai’s Remraam community at a transaction value of USD 15 million, growing the total portfolio value to USD 367 million. ENBD REIT’s most recent acquisition of The Edge in Dubai Internet City saw a transaction value of USD 76 million push the total portfolio value up to USD 447 million.
Anthony Taylor, Fund Manager, Real Estate, at Emirates NBD Asset Management, commented: “We’re pleased to announce the complete deployment of the cash raised as part of the listing in March. Investors in REITs are looking to see efficient utilization of funds in a portfolio of assets that will consistently generate income. Ours is such a product, and we are looking forward to growing both its footprint and value in the coming months and years.”
Following the deployment of the listing proceeds, ENBD REIT now holds a total of 10 assets across Dubai. The portfolio has an overall occupancy of 89%, with a weighted average unexpired lease term (WAULT) of 3.5 years. Offices account for 67% of the portfolio, residential buildings account for 22% and alternative assets (including student accommodation and education) make up the remaining 11%. ENBD REIT's last reported net asset valuation (NAV) was USD 292 million, or USD 1.15 per share, as at 30th June 2017.
He added: “Additionally, we have tapped into our Islamic finance facility and have now achieved a more efficient capital structure, which was one of the main objectives of our listing. We continue to explore potential acquisitions funded through our existing finance facility, to further diversify the portfolio and improve our yield.”
